§ 34.1-7-507 — Warranties on negotiation or delivery of document of title

(a) If a person negotiates or delivers a document of title
for value, otherwise than as a mere intermediary under W.S.
34.1-7-508, unless otherwise agreed, the transferor, in addition
to any warranty made in selling or leasing the goods, warrants
to its immediate purchaser only that:
(i) The document is genuine;
(ii) The transferor does not have knowledge of any
fact that would impair the document's validity or worth; and
(iii) The negotiation or delivery is rightful and
fully effective with respect to the title to the document and
the goods it represents.