C.R.S. § 4-7-507

If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under section 4-7-508 , 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.