N.Y. Uniform Commercial Code Law § 7-507: Warranties on Negotiation or Delivery of Document of Title

Section 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 7--508, 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.