If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under Section 7-7-508, 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.
Structure Code of Alabama
Article 7 - Warehouse Receipts, Bills of Lading and Other Documents of Title.
Part 5 - Warehouse Receipts and Bills of Lading: Negotiation and Transfer.
Section 7-7-501 - Form of Negotiation and Requirements of Due Negotiation.
Section 7-7-502 - Rights Acquired by Due Negotiation.
Section 7-7-503 - Document of Title to Goods Defeated in Certain Cases.
Section 7-7-505 - Indorser Not Guarantor for Other Parties.
Section 7-7-506 - Delivery Without Indorsement: Right to Compel Indorsement.
Section 7-7-507 - Warranties on Negotiation or Delivery of Document of Title.
Section 7-7-508 - Warranties of Collecting Bank as to Documents of Title.
Section 7-7-509 - Adequate Compliance With Commercial Contract.