South Carolina § 36-7-507 Warranties on negotiation or delivery of document of title.

South Carolina Statutes

§ 36-7-507 — Warranties on negotiation or delivery of document of title.

South Carolina § 36-7-507

Title 36COMMERCIAL CODE

Ch. 7COMMERCIAL CODE—WAREHOUSE RECEIPTS, BILLS OF LADING AND OTHER DOCUMENTS OF TITLE

This text of South Carolina § 36-7-507 (Warranties on negotiation or delivery of document of title.) is published on Counsel Stack Legal Research, covering South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

S.C. Code Ann. § 36-7-507 (2026).

Text

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.

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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.

Legislative History

HISTORY: 1962 Code SECTION 10.7-507; 1966 (54) 2716; 2014 Act No. 213 (S.343), SECTION 2, eff October 1, 2014. 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."