Warranties on negotiation or delivery of document of title.

S.C. Code Ann. § 36-7-507

in effect

If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under Section 36-7-508, then 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. OFFICIAL COMMENT Prior Uniform Statutory Provision: Former Section 7-507. Changes: Substitution of the word "delivery" for the word "transfer," reference leasing transactions and style. Purposes: 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 through 2-318 and Sections 2A-210 through 2A-316) 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. Cross References: Point 1: Sections 2-312 through 2-318 and 2A-310-through 2A-316. Point 2: Section 7-508. Definitional Cross References: "Delivery". Section 1-201. "Document of title". Section 1-201. "Genuine". Section 1-201. "Goods". Section 7-102. "Person". Section 1-201. "Purchaser". Section 1-201. "Value". Section 1-204. Editor's Note 2014 Act No. 213, SECTION 51, provides as follows: "SECTION 51. This act becomes effective on October 1, 2014. It applies to transactions entered into and events occurring after that date."

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.scstatehouse.gov/code/t36c007.phpFetched: 10/17/2026