South Carolina § 36-7-505 - Indorser not a guarantor for other parties.
Full text of South Carolina South Carolina Code of Laws § 36-7-505 — Indorser not a guarantor for other parties., with citation guidance and answers to common questions.
§ 36-7-505. Indorser not a guarantor for other parties.
The indorsement of a tangible document of title issued by a bailee does not make the indorser liable for any default by the bailee or by previous indorsers.
HISTORY: 1962 Code SECTION 10.7-505; 1966 (54) 2716; 2014 Act No. 213 (S.343), SECTION 2, eff October 1, 2014.
OFFICIAL COMMENT
Prior Uniform Statutory Provision: Former Section 7-505.
Changes: Limited to tangible documents of title.
Purposes:
This section is limited to tangible documents of title as the concept of indorsement is irrelevant to electronic documents of title. Electronic documents of title will be transferred by delivery of control. Section 7-106. The indorsement of a tangible document of title is generally understood to be directed towards perfecting the transferee's rights rather than towards assuming additional obligations. The language of the present section, however, does not preclude the one case in which an indorsement given for value guarantees future action, namely, that in which the bailee has not yet become liable upon the document at the time of the indorsement. Under such circumstances the indorser, of course, engages that appropriate honor of the document by the bailee will occur. See Section 7-502(a)(4) as to negotiable delivery orders. However, even in such a case, once the bailee attorns to the transferee, the indorser's obligation has been fulfilled and the policy of this section excludes any continuing obligation on the part of the indorser for the bailee's ultimate actual performance.
Cross Reference: Sections 7-106 and 7-502.
Definitional Cross References:
"Bailee". Section 7-102.
"Document of title". Section 1-201.
"Party". Section 1-201.
Editor's Note
2014 Act No. 213, SECTION 51, provides as follows:
"SECTION 51. This act becomes effective on October 1, 2014. It applies to transactions entered into and events occurring after that date."
Source: official South Carolina text · Last verified 2026-08-27
Frequently Asked Questions About South Carolina § 36-7-505
What does South Carolina Code of Laws § 36-7-505 cover?
Section 36-7-505 ("Indorser not a guarantor for other parties.") is part of the South Carolina Code of Laws, the codified statutory law of South Carolina. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite South Carolina § 36-7-505?
A common citation format is "South Carolina Code of Laws § 36-7-505" (South Carolina). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of South Carolina law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the South Carolina official source linked on this page or consult a licensed South Carolina attorney.
How does South Carolina § 36-7-505 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in South Carolina can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in South Carolina.