§ 26-1-2-506 — Rights of financing agency

(1) A financing agency by paying or
purchasing for value a draft which relates to a shipment of goods
acquires to the extent of the payment or purchase and in addition to its
own rights under the draft and any document of title securing it any
rights of the shipper in the goods including the right to stop delivery
and the shipper's right to have the draft honored by the buyer.
(2) The right to reimbursement of a financing agency which has in
good faith honored or purchased the draft under commitment to or
authority from the buyer is not impaired by subsequent discovery of
defects with reference to any relevant document which was apparently
regular.
Formerly: Acts 1963, c.317, s.2-506. As amended by
P.L.143-2007, SEC.15.