New York Uniform Commercial Code Code § 7-507

Warranties on Negotiation or Delivery of Document of Title
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Section 7--507. Warranties on Negotiation or Delivery of Document of\n                  Title.\n  If a person negotiates or delivers a document of title for value,\notherwise than as a mere intermediary under Section 7--508, unless\notherwise agreed, the transferor, in addition to any warranty made in\nselling or leasing the goods, warrants to its immediate purchaser only\nthat:\n  (1) the document is genuine;\n  (2) the transferor does not have knowledge of any fact that would\nimpair the document's validity or worth; and\n  (3) the negotiation or delivery is rightful and fully effective with\nrespect to the title to the document and the goods it represents.\n

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