70A-7a-207 - Goods must be kept separate -- Fungible goods.
70A-7a-207. Goods must be kept separate -- Fungible goods.
(1) Unless the warehouse receipt provides otherwise, a warehouse shall keep separate thegoods covered by each receipt so as to permit at all times identification and delivery of thosegoods. However, different lots of fungible goods may be commingled.
(2) If different lots of fungible goods are commingled, the goods are owned in commonby the persons entitled thereto and the warehouse is severally liable to each owner for thatowner's share. If, because of overissue, a mass of fungible goods is insufficient to meet all thereceipts the warehouse has issued against it, the persons entitled include all holders to whichoverissued receipts have been duly negotiated.
Enacted by Chapter 42, 2006 General Session