If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under Section 36-7-508, then 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: 1962 Code Section 10.7-507; 1966 (54) 2716; 2014 Act No. 213 (S.343), Section 2, eff October 1, 2014. OFFICIAL COMMENT Prior Uniform Statutory Provision: Former Section 7-507. Changes: Substitution of the word 'delivery' for the word 'transfer,' reference leasing transactions and style. Purposes: 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 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 through 2-318 and Sections 2A-210 through 2A-316) 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. Cross References: Point 1: Sections 2-312 through 2-318 and 2A-310-through 2A-316. Point 2: Section 7-508. Definitional Cross References: 'Delivery'. Section 1-201. 'Document of title'. Section 1-201. 'Genuine'. Section 1-201. 'Goods'. Section 7-102. 'Person'. Section 1-201. 'Purchaser'. Section 1-201. 'Value'. Section 1-204.
South Carolina Legal Code