KRS 355.2-506: Rights of financing agency.

(1) A financing agency by paying or purchasing for value a draft which relates to a

shipment of goods acquires to the extent of the payment or purchase and in addition

to its own rights under the draft and any document of title securing it any rights of

the shipper in the goods including the right to stop delivery and the shipper's right to

have the draft honored by the buyer.

(2) The right to reimbursement of a financing agency which has in good faith honored

or purchased the draft under commitment to or autho rity from the buyer is not

impaired by subsequent discovery of defects with reference to any relevant

document which was apparently regular.