Goods must be kept separate; fungible goods.

Unless the warehouse receipt provides otherwise, a warehouse shall keep separate the goods covered by each receipt so as to permit at all times identification and delivery of those goods. However, different lots of fungible goods may be commingled. If different lots of fungible goods are commingled, the goods are owned in common by the persons entitled thereto and the warehouse is severally liable to each owner for that owner’s share. If, because of overissue, a mass of fungible goods is insufficient to meet all the receipts the warehouse has issued against it, the persons entitled to the fungible goods include all holders to which overissued receipts have been duly negotiated. “Warehouse”. Section 7-102. “Warehouse receipt”. Section 1-201. “Person”. Section 1-201. “Holder”. Section 1-201. “Goods”. Section 7-102. “Fungible goods”. Section 1-201. “Duly negotiate”. Section 7-501. Definitional Cross References: “Delivery”. Section 1-201. Purposes: No change of substance is made from former Section 7-207. Holders to whom overissued receipts have been duly negotiated shall share in a mass of fungible goods. Where individual ownership interests are merged into claims on a common fund, as is necessarily the case with fungible goods, there is no policy reason for discriminating between successive purchasers of similar claims. Changes: Changes for style only. Prior Uniform Statutory Provision: Former Section 7-207. “Warehouseman”. Section 7-102. “Warehouse receipt”. Section 1-201. “Person”. Section 1-201. “Holder”. Section 1-201. “Goods”. Section 7-102. “Fungible” goods. Section 1-201. “Duly negotiate”. Section 7-501. Definitional Cross References: “Delivery”. Section 1-201. Purposes of Changes: No change of substance is made other than the explicit statement that holders to whom overissued receipts have been duly negotiated shall share in a mass of fungible goods. Where individual ownership interests are merged into claims on a common fund, as is necessarily the case with fungible goods, there is no policy reason for discriminating between successive purchasers of similar claims. Changes: Consolidated and revised; holders of overissued receipts permitted to share in mass of fungible goods. Prior Uniform Statutory Provision: Sections 22, 23 and 24, Uniform Warehouse Receipts Act.