Section 11-7-507. Warranties on negotiation or delivery of document of title

   If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under Code Section 11-7-508, 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.

Code 1933, § 109A-7--507, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 2010, p. 481, § 1-1/HB 451.