Sec. 2.506. RIGHTS OF FINANCING AGENCY. (a) A financing agency by paying or purchasing for value a draft which 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.
(b) The right to reimbursement of a financing agency which 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.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1, 1967.
Amended by:
Acts 2005, 79th Leg., Ch. 122 (S.B. 1593), Sec. 9, eff. September 1, 2005.
Structure Texas Statutes
Title 1 - Uniform Commercial Code
Section 2.501. Insurable Interest in Goods; Manner of Identification of Goods
Section 2.502. Buyer's Right to Goods on Seller's Repudiation, Failure to Deliver, or Insolvency
Section 2.503. Manner of Seller's Tender of Delivery
Section 2.504. Shipment by Seller
Section 2.505. Seller's Shipment Under Reservation
Section 2.506. Rights of Financing Agency
Section 2.507. Effect of Seller's Tender; Delivery on Condition
Section 2.508. Cure by Seller of Improper Tender or Delivery; Replacement
Section 2.509. Risk of Loss in the Absence of Breach
Section 2.510. Effect of Breach on Risk of Loss
Section 2.511. Tender of Payment by Buyer; Payment by Check
Section 2.512. Payment by Buyer Before Inspection
Section 2.513. Buyer's Right to Inspection of Goods
Section 2.514. When Documents Deliverable on Acceptance; When on Payment