N.Y. Uniform Commercial Code Law § 2-506: Rights of Financing Agency

Section 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 authority

from the buyer is not impaired by subsequent discovery of defects with

reference to any relevant document which was apparently regular.