N.Y. U.C.C. 7-508

Section 7--508. Warranties of Collecting Bank as to Documents of Title.\n A collecting bank or other intermediary known to be entrusted with\ndocuments of title on behalf of another or with collection of a draft or\nother claim against delivery of documents warrants by the delivery of\nthe documents only its own good faith and authority even if the\ncollecting bank or other intermediary has purchased or made advances\nagainst the claim or draft to be collected.\n