Where a person negotiates or delivers a document for value otherwise than as a mere intermediary under § 8.7-508, then, unless otherwise agreed, he warrants to his immediate purchaser, in addition to any warranty made in selling or leasing the goods, that:
(a) the document is genuine; and
(b) he has no knowledge of any fact that would impair the document's validity or worth; and
(c) his negotiation or delivery is rightful and fully effective with respect to the title to the document and the goods it represents.
Code 1950, § 61-47; 1964, c. 219; 2004, c. 200.
Structure Code of Virginia
Title 8.7 - Commercial Code - Warehouse Receipts, Bills of Lading and Other Documents of Title
§ 8.7-501. Form of negotiation and requirements of "due negotiation"
§ 8.7-502. Rights acquired by due negotiation
§ 8.7-503. Document to goods defeated in certain cases
§ 8.7-505. Endorser not a guarantor for other parties
§ 8.7-506. Delivery without endorsement; right to compel endorsement
§ 8.7-507. Warranties on negotiation or delivery of receipt or bill
§ 8.7-508. Warranties of collecting bank as to documents
§ 8.7-509. Receipt or bill; when adequate compliance with commercial contract