2006 New York Code - Negotiation And Transfer

 
  Section 7--508. Warranties of Collecting Bank as to Documents.
    A  collecting  bank  or  other intermediary known to be entrusted with
  documents on behalf of another or with collection of a  draft  or  other
  claim  against  delivery  of  documents warrants by such delivery of the
  documents only its own good faith and authority. This rule applies  even
  though the intermediary has purchased or made advances against the claim
  or draft to be collected.