Sec. 7507.
If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under section 7508, unless otherwise agreed, the transferor, in addition to any warranty made in selling or leasing the goods, warrants to its immediate purchaser only the following:
(a) That the document is genuine.
(b) That the transferor does not have knowledge of any fact that would impair the document's validity or worth.
(c) That the negotiation or delivery is rightful and fully effective with respect to the title to the document and the goods it represents.
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 7 - Warehouse Receipts, Bills of Lading and Other Documents of Title (440.7101...440.7702)
Section 440.7501 - Negotiable Document of Title; Indorsement; Notice of Arrival.
Section 440.7502 - Negotiation; Rights Acquired.
Section 440.7503 - Documents of Title to Goods; Defeat in Certain Cases.
Section 440.7505 - Documents of Title; Liability of Indorser.
Section 440.7507 - Documents of Title; Warranties on Negotiation or Delivery for Value.
Section 440.7508 - Documents of Title; Warranties of Collecting Bank.