{"data":{"id":"us-nm/55-7-507","jurisdiction":"us-nm","citation":"55-7-507","heading":"Warranties on negotiation or delivery of document of title.","body":"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:\n(1) the document is genuine;\n(2) the transferor does not have knowledge of any fact that would impair the document's validity or worth; and\n(3) the negotiation or delivery is rightful and fully effective with respect to the title to the document and the goods it represents.\nOFFICIAL COMMENTS\nUCC Official Comments © by ALI \u0026 the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.\nPrior Uniform Statutory Provision. - Former Section 7-507 [55-7-507 NMSA 1978].\nChanges. - Substitution of the word \"delivery\" for the word \"transfer,\" reference leasing transactions and style.\n1. 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.\n2. The limited warranties of a delivering or collecting intermediary, including a collecting bank, are stated in Section 7-508 [55-7-508 NMSA 1978].\nPoint 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].\nPoint 2: Section 7-508 [55-7-508 NMSA 1978].\n\"Delivery\". Section 1-201 [55-1-201 NMSA 1978].\n\"Document of title\". Section 1-201.\n\"Genuine\". Section 1-201.\n\"Goods\". Section 7-102 [55-7-102 NMSA 1978].\n\"Person\". Section 1-201.\n\"Purchaser\". Section 1-201.\n\"Value\". Section 1-204 [55-1-204 NMSA 1978].","path":["Chapter 55 - Uniform Commercial Code","ARTICLE 7 Documents of Title"],"source_url":"https://nmonesource.com/nmos/nmsa-unanno/en/item/18558/index.do","current_through":"2024-04-27","vintage":"","retrieved_at":"2026-09-03T15:02:20Z","sha256":"004ed89594d988deddb63180bb7e34dc7939f168a2511c5696b2dbf1f1c73c6b","source_id":"us-nm","stale":false,"prev":"us-nm/55-7-506","next":"us-nm/55-7-508"},"notice":"GroundRules: Original legal text. Not legal advice."}