A buyer in ordinary course of business of fungible goods sold and delivered by a warehouse that is also in the business of buying and selling such goods takes the goods free of any claim under a warehouse receipt even if the receipt is negotiable and has been duly negotiated.
Source: L. 2006: Entire article R&RE, p. 474, § 2, effective September 1.
Editor's note: This section is similar to former § 4-7-205 as it existed prior to 2006.
Prior Uniform Statutory Provision: Former Section 7-205.
Changes: Changes for style only.
Purposes:
Cross References: Sections 2-403 and 9-320.
Definitional Cross References:
"Buyer in ordinary course of business". Section 1-201.
"Delivery". Section 1-201.
"Duly negotiate". Section 7-501.
"Fungible" goods. Section 1-201.
"Goods". Section 7-102.
"Value". Section 1-201.
"Warehouse receipt". Section 1-201.
"Warehouse". Section 7-102.
Structure Colorado Code
Title 4 - Uniform Commercial Code
Article 7 - Documents of Title
Part 2 - Warehouse Receipts - Special Provisions
§ 4-7-201. Person That May Issue a Warehouse Receipt - Storage Under Bond
§ 4-7-202. Form of Warehouse Receipt - Effect of Omission
§ 4-7-203. Liability for Nonreceipt or Misdescription
§ 4-7-204. Duty of Care - Contractual Limitation of Warehouse's Liability
§ 4-7-205. Title Under Warehouse Receipt Defeated in Certain Cases
§ 4-7-206. Termination of Storage at Warehouse's Option
§ 4-7-207. Goods Must Be Kept Separate - Fungible Goods