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§ 55-7-507 NMSA 1978

Warranties on negotiation or delivery of document of title

Known as the Uniform Commercial Code

The act spans §§ 55–55 (591 sections).

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

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.

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].

Official source: NMOneSource (New Mexico Compilation Commission). Reproduced from public-domain New Mexico statutes; confirm against the official source for the current text. Not legal advice.