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.
Tex. Bus. & Com. Code § 7.205
TITLE UNDER WAREHOUSE RECEIPT DEFEATED IN CERTAIN CASES
Known as the Uniform Commercial Code
The act spans §§ 1–12 (616 sections).
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff
Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.