Cal. Commercial Code § 2506
Cal. Commercial Code § 2506
California · California Commercial Code · Status: effective · Effective 2007-01-01
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- Citation
- Cal. Commercial Code § 2506, California, version 1 as recorded 2026-07-25, yourstate.us, https://yourstate.us/provision/790290
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Full text
(1) A financing agency by paying or purchasing for value a draft which relates to a shipment of goods acquires to the extent of the payment or purchase and in addition to its own rights under the draft and any document of title securing it any rights of the shipper in the goods including the right to stop delivery and the shipper’s right to have the draft honored by the buyer.
(2) The right to reimbursement of a financing agency which has in good faith honored or purchased the draft under commitment to or authority from the buyer is not impaired by subsequent discovery of defects with reference to any relevant document which was apparently regular.