2006 New York Code - Negotiation And Transfer

 
  Section 7--507. Warranties  on  Negotiation  or  Transfer  of Receipt or
                    Bill.
    Where a person negotiates or transfers a document of title  for  value
  otherwise  than as a mere intermediary under the next following section,
  then unless otherwise agreed he warrants to his immediate purchaser only
  in addition to any warranty made in selling the goods
    (a)  that the document is genuine; and
    (b)  that he has no knowledge of  any  fact  which  would  impair  its
  validity or worth; and
    (c)  that  his negotiation or transfer is rightful and fully effective
  with respect to the title to the document and the goods it represents.