Printable Format84-2-506. Rights of financing agency. (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.
History: L. 1965, ch. 564, § 71; L. 2007, ch. 90, § 55; July 1, 2008.
KANSAS COMMENT, 1996
This section extends any security rights of the seller in the goods to a financing agency that has paid or purchased a draft covering the shipment. These rights include the right to stop delivery under 84-2-705 and the right to have the draft honored by the buyer as drawee. These rights are in addition to the rights of the financing agency under the draft or any document of title securing the draft.