Sec. 2506.
(1) A financing agency by paying or purchasing for value a draft that relates to a shipment of goods acquires to the extent of the payment or purchase and in addition to its own rights under the draft and any document of title securing it any rights of the shipper in the goods including the right to stop delivery and the shipper's right to have the draft honored by the buyer.
(2) The right to reimbursement of a financing agency that has in good faith honored or purchased the draft under commitment to or authority from the buyer is not impaired by subsequent discovery of defects with reference to any relevant document which was apparently regular.
History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 2012, Act 87, Eff. July 1, 2013
Structure Michigan Compiled Laws
Chapter 440 - Uniform Commercial Code
Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102)
Article 2 - Sales (440.2101...440.2725)
174-1962-2-5 - Part 5 Performance (440.2501...440.2515)
Section 440.2501 - Special Property and Insurable Interest in Goods; Identification of Goods.
Section 440.2502 - Special Property and Insurable Interest in Goods.
Section 440.2504 - Delivery by Shipment; Contract With Carrier, Documents, Notice.
Section 440.2505 - Shipment With and Without Reservation by Seller.
Section 440.2506 - Financing Agency; Rights; Reimbursement.
Section 440.2507 - Tender of Delivery; Conditions, Payment.
Section 440.2508 - Improper Delivery; Cure, Replacement.
Section 440.2509 - Risk of Loss; Absence of Breach.
Section 440.2510 - Risk of Loss; Effect of Breach.
Section 440.2511 - Payment by Buyer; Tender, Check.
Section 440.2512 - Payment by Buyer; Inspection, Nonconforming Goods.
Section 440.2513 - Inspection by Buyer; Time, Expenses, Place, Method.
Section 440.2514 - Documents; Delivery to Drawee on Acceptance or Payment.
Section 440.2515 - Adjustment of Dispute; Preservation of Evidence, Inspection.