If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under N.C. Gen. Stat. § 25-7-508, unless otherwise agreed, the transferor, in addition to any warranty made in selling or leasing the goods, warrants to its immediate purchaser only that:

(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. (1917, c. 37, s. 44; 1919, c. 65, s. 34; C.S., ss. 316, 4084; 1965, c. 700, s. 1; 1998-217, s. 4(c); 2006-112, s. 25.)