N.Y. Uniform Commercial Code Law § 7-205: Title Under Warehouse Receipt Defeated in Certain Cases

Section 7--205. Title Under Warehouse Receipt Defeated in Certain Cases.

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.