Okla. Stat. tit. 12A § 7-508

Current through Laws 2024, c. 453.

Section 7-508 - Warranties of collecting bank as to documents of title

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.

Okla. Stat. tit. 12A, § 7-508

Laws 1961, p. 150, § 7-508; Amended by Laws 2005 , HB 2035, c. 140, § 35, eff. 1/1/2006.

Oklahoma Code Comment

This changes Oklahoma law. Previous Oklahoma decisions have held a bank which collects a draft and transfers a document to be a seller of the document, and thus made all the warranties of any other transferor, Ft. Worth Elevator Co. v. State Guaranty Bank of Blackwell, 93 Okl. 191, 220 P. 340 (1923); First National Bank of Heavener v. Kempner, 103 Okl. 237, 229 P. 840 (1924); American National Bank v. J. Rosenbaum, 148 Okl. 232, 299 P. 447 (1931).

The Commercial Code states the prevailing view in the United States, 2 Williston on Sales, § 435.