Warranties of Collecting Bank as to Documents

A collecting bank or other intermediary known to be entrusted with documents on behalf of another or with collection of a draft or other claim against delivery of documents warrants by such delivery of the documents only its own good faith and authority. This rule applies even COL120106 DIV. 7 WAREHOUSE RECEIPTS, BILLS OF LADING AND O THER DOCUMENTS OF TITLE though the intermediary has purchased or made advances against the claim or draft to be collected.