2018 New Mexico Statutes
Chapter 55 - Uniform Commercial Code
Article 7 - Documents of Title
Section 55-7-507 - 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 Section 55-7-508 NMSA 1978, 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.

History: 1953 Comp., § 50A-7-507, enacted by Laws 1961, ch. 96, § 7-507; 2005, ch. 144, § 86.

OFFICIAL COMMENTS

UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.

Prior Uniform Statutory Provision. — Former Section 7-507 [55-7-507 NMSA 1978].

Changes. — Substitution of the word "delivery" for the word "transfer," reference leasing transactions and style.

1. Delivery of goods by use of a document of title does not limit or displace the ordinary obligations of a seller or lessor as to any warranties regarding the goods that arises under other law. If the transfer of documents attends or follows the making of a contract for the sale or lease of goods, the general obligations on warranties as to the goods (Sections 2-312 [55-2-312 NMSA 1978] through 2-318 [55-2-318 NMSA 1978] and Sections 2A-210 [55-2A-210 NMSA 1978] through 2A-316 [55-2A-316 NMSA 1978]) are brought to bear as well as the special warranties under this section.

2. The limited warranties of a delivering or collecting intermediary, including a collecting bank, are stated in Section 7-508 [55-7-508 NMSA 1978].

Point 1: Sections 2-312 [55-2-312 NMSA 1978] through 2-318 [55-2-318 NMSA 1978] and 2A-310 [55-2A 310 NMSA 1978] - through 2A-316 [55-2A-316 NMSA 1978].

Point 2: Section 7-508 [55-7-508 NMSA 1978].

"Delivery". Section 1-201 [55-1-201 NMSA 1978].

"Document of title". Section 1-201.

"Genuine". Section 1-201.

"Goods". Section 7-102 [55-7-102 NMSA 1978].

"Person". Section 1-201.

"Purchaser". Section 1-201.

"Value". Section 1-204 [55-1-204 NMSA 1978].

Repeals and reenactments. — Laws 2005, ch. 144, § 86, effective January 1, 2006, repealed former 55-7-507 NMSA 1978 as enacted by Laws 1961, ch. 96, § 7-507, and enacted a new section. Pursuant to 12-2A-14 NMSA 1978, the 2005 revision is considered an amendment rather than a new enactment.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 13 Am. Jur. 2d Carriers § 360; 15A Am. Jur. 2d Commercial Code §§ 67, 68; 68A Am. Jur. 2d Secured Transactions § 109; 78 Am. Jur. 2d Warehouses §§ 71, 90.

93 C.J.S. Warehousemen and Safe Depositaries § 27.