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

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. History: 1953 Comp., § 50A-7-507, enacted by Laws 1961, ch. 96, § 7-507; 2005, ch. 144, § 86. 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].