§ 36-7-508 — Warranties of collecting bank as to documents of title.

South Carolina § 36-7-508

• Jurisdiction: South Carolina
• Title 36: COMMERCIAL CODE
• Ch. 7: COMMERCIAL CODE—WAREHOUSE RECEIPTS, BILLS OF LADING AND OTHER DOCUMENTS OF TITLE

Text

A collecting bank or other intermediary known to be entrusted with documents of title on behalf of another or with collection of a draft or other claim against delivery of documents warrants by the delivery of the documents only its own good faith and authority even if the collecting bank or other intermediary has purchased or made advances against the claim or draft to be collected.

Legislative History

HISTORY: 1962 Code SECTION 10.7-508; 1966 (54) 2716; 2014 Act No. 213 (S.343), SECTION 2, eff October 1, 2014. OFFICIAL COMMENT Prior Uniform Statutory Provision: Former Section 7-508. Changes: Changes for style only. Purposes: 1. To state the limited warranties given with respect to the documents accompanying a documentary draft. 2. In warranting its authority a collecting bank or other intermediary only warrants its authority from its transferor. See Section 4-203. It does not warrant the genuineness or effectiveness of the document. Compare Section 7-507. 3. Other duties and rights of banks handling documentary drafts for collection are stated in Article 4, Part 5. On the meaning of draft, see Section 4-104 and Section 5-102, comment 11. Cross References: Sections 4-104, 4-203, 4-501 through 4-504, 5-102, and 7-507. Definitional Cross References: "Collecting bank". Section 4-105. "Delivery". Section 1-201. "Document of title". Section 1-102. "Documentary draft". Section 4-104. "Intermediary bank". Section 4-105. "Good faith". Section 1-201 [7-102.] 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."