New Mexico · Through 2024-04-27

55-7-507: Warranties on negotiation or delivery of document of title.

If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under Section 55-7-508 NMSA 1978, unless otherwise agreed, the transferor, in addition to any warranty made in selling or leasing the goods, warrants to its immediate purchaser only that:
(1) the document is genuine;
(2) the transferor does not have knowledge of any fact that would impair the document's validity or worth; and
(3) the negotiation or delivery is rightful and fully effective with respect to the title to the document and the goods it represents.
OFFICIAL COMMENTS
UCC Official Comments © by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Prior Uniform Statutory Provision. - Former Section 7-507 [55-7-507 NMSA 1978].
Changes. - Substitution of the word "delivery" for the word "transfer," reference leasing transactions and style.
1. Delivery of goods by use of a document of title does not limit or displace the ordinary obligations of a seller or lessor as to any warranties regarding the goods that arises under other law. If the transfer of documents attends or follows the making of a contract for the sale or lease of goods, the general obligations on warranties as to the goods (Sections 2-312 [55-2-312 NMSA 1978] through 2-318 [55-2-318 NMSA 1978] and Sections 2A-210 [55-2A-210 NMSA 1978] through 2A-316 [55-2A-316 NMSA 1978]) are brought to bear as well as the special warranties under this section.
2. The limited warranties of a delivering or collecting intermediary, including a collecting bank, are stated in Section 7-508 [55-7-508 NMSA 1978].
Point 1: Sections 2-312 [55-2-312 NMSA 1978] through 2-318 [55-2-318 NMSA 1978] and 2A-310 [55-2A-310 NMSA 1978] - through 2A-316 [55-2A-316 NMSA 1978].
Point 2: Section 7-508 [55-7-508 NMSA 1978].
"Delivery". Section 1-201 [55-1-201 NMSA 1978].
"Document of title". Section 1-201.
"Genuine". Section 1-201.
"Goods". Section 7-102 [55-7-102 NMSA 1978].
"Person". Section 1-201.
"Purchaser". Section 1-201.
"Value". Section 1-204 [55-1-204 NMSA 1978].

Where this section sits in the code

Chapter 55 - Uniform Commercial Code
ARTICLE 7 Documents of Title

(1) the document is genuine;

(2) the transferor does not have knowledge of any fact that would impair the document's validity or worth; and

(3) the negotiation or delivery is rightful and fully effective with respect to the title to the document and the goods it represents.

OFFICIAL COMMENTS

Prior Uniform Statutory Provision. - Former Section 7-507 [55-7-507 NMSA 1978].

Changes. - Substitution of the word "delivery" for the word "transfer," reference leasing transactions and style.

1. Delivery of goods by use of a document of title does not limit or displace the ordinary obligations of a seller or lessor as to any warranties regarding the goods that arises under other law. If the transfer of documents attends or follows the making of a contract for the sale or lease of goods, the general obligations on warranties as to the goods (Sections 2-312 [55-2-312 NMSA 1978] through 2-318 [55-2-318 NMSA 1978] and Sections 2A-210 [55-2A-210 NMSA 1978] through 2A-316 [55-2A-316 NMSA 1978]) are brought to bear as well as the special warranties under this section.

2. The limited warranties of a delivering or collecting intermediary, including a collecting bank, are stated in Section 7-508 [55-7-508 NMSA 1978].

Point 1: Sections 2-312 [55-2-312 NMSA 1978] through 2-318 [55-2-318 NMSA 1978] and 2A-310 [55-2A-310 NMSA 1978] - through 2A-316 [55-2A-316 NMSA 1978].

Point 2: Section 7-508 [55-7-508 NMSA 1978].

"Delivery". Section 1-201 [55-1-201 NMSA 1978].

"Document of title". Section 1-201.

"Genuine". Section 1-201.

"Goods". Section 7-102 [55-7-102 NMSA 1978].

"Person". Section 1-201.

"Purchaser". Section 1-201.

"Value". Section 1-204 [55-1-204 NMSA 1978].

Collected 2026-09-03T15:02:20Z. Source file · JSON

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