Goods must be kept separate; fungible goods

(a) 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. (b) 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 include all holders to which overissued receipts have been duly negotiated. History: 1953 Comp., § 50A-7-207, enacted by Laws 1961, ch. 96, § 7-207; 2005, ch. 144, § 63. OFFICIAL COMMENTS UCC Official Comments © by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved. Prior Uniform Statutory Provision. — Former Section 7-207 [55-7-207 NMSA 1978]. Changes. — Changes for style only. No change of substance is made from former Section 7-207 [55-7-207 NMSA 1978]. 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. "Delivery". Section 1-201 [55-1-201 NMSA 1978]. "Duly negotiate". Section 7-501 [55-7-501 NMSA 1978]. "Fungible goods". Section 1-201. "Goods". Section 7-102 [55-7-102 NMSA 1978]. "Holder". Section 1-201. "Person". Section 1-201. "Warehouse receipt". Section 1-201. "Warehouse". Section 7-102.