N.Y. Uniform Commercial Code Law § 7-508: Warranties of Collecting Bank as to Documents of Title

Section 7--508. Warranties of Collecting Bank as to Documents of Title.

A collecting bank or other intermediary known to be entrusted with

documents of title on behalf of another or with collection of a draft or

other claim against delivery of documents warrants by the delivery of

the documents only its own good faith and authority even if the

collecting bank or other intermediary has purchased or made advances

against the claim or draft to be collected.