30-7-507. Warranties on negotiation or transfer of receipt or bill. Where a person negotiates or transfers a document of title for value otherwise than as a mere intermediary under the next following section, then unless otherwise agreed he warrants to his immediate purchaser only in addition to any warranty made in selling the goods:
     (a) that the document is genuine; and
     (b) that he has no knowledge of any fact which would impair its validity or worth; and
     (c) that his negotiation or transfer is rightful and fully effective with respect to the title to the document and the goods it represents.

     History: En. Sec. 7-507, Ch. 264, L. 1963; R.C.M. 1947, 87A-7-507.