2018 New Mexico Statutes
Chapter 55 - Uniform Commercial Code
Article 7 - Documents of Title
Section 55-7-508 - Warranties of collecting bank as to documents of title.
A collecting bank or other intermediary known to be entrusted with documents of title on behalf of another or with collection of a draft or other claim against delivery of documents warrants by the delivery of the documents only its own good faith and authority even if the collecting bank or other intermediary has purchased or made advances against the claim or draft to be collected.
History: 1953 Comp., § 50A-7-508, enacted by Laws 1961, ch. 96, § 7-508; 2005, ch. 144, § 87.
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 7-508 [55-7-508 NMSA 1978].
Changes. — Changes for style only.
1. To state the limited warranties given with respect to the documents accompanying a documentary draft.
2. In warranting its authority a collecting bank or other intermediary only warrants its authority from its transferor. See Section 4-203 [55-4-203 NMSA 1978]. It does not warrant the genuineness or effectiveness of the document. Compare Section 7-507 [55-7-507 NMSA 1978].
3. Other duties and rights of banks handling documentary drafts for collection are stated in Article 4, Part 5. On the meaning of draft, see Section 4-104 [55-4-104 NMSA 1978] and Section 5-102 [55-5-102 NMSA 1978], comment 11.
Sections 4-104 [55-4-104 NMSA 1978], 4-203 [55-4-203 NMSA 1978], 4-501 [55-4-501 NMSA 1978] through 4-504 [55-4-504 NMSA 1978], 5-102 [55-5-102 NMSA 1978], and 7-507 [55-7-507 NMSA 1978].
"Collecting bank". Section 4-105 [55-4-105 NMSA 1978].
"Delivery". Section 1-201 [55-1-201 NMSA 1978].
"Document of title". Section 1-102.
"Documentary draft". Section 4-104 [55-4-104 NMSA 1978].
"Intermediary bank". Section 4-105.
"Good faith". Section 1-201.
Repeals and reenactments. — Laws 2005, ch. 144, § 87, effective January 1, 2006, repealed former 55-7-508 NMSA 1978 as enacted by Laws 1961, ch. 96, § 7-508, and enacted a new section. Pursuant to 12-2A-14 NMSA 1978, the 2005 revision is considered an amendment rather than a new enactment.
