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.
Structure New York Laws
Article 7 - Documents of Title
Part 2 - Warehouse Receipts: Special Provisions
7-201 - Person That May Issue a Warehouse Receipt; Storage Under Bond.
7-202 - Form of Warehouse Receipt; Effect of Omission.
7-203 - Liability for Nonreceipt or Misdescription.
7-204 - Duty of Care; Contractual Limitation of Warehouse's Liability.
7-205 - Title Under Warehouse Receipt Defeated in Certain Cases.
7-206 - Termination of Storage at Warehouse's Option.
7-207 - Goods Must Be Kept Separate; Fungible Goods.