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336.3-420 CONVERSION OF INSTRUMENT.
(a) The law applicable to conversion of personal property applies to instruments. An
instrument is also converted if it is taken by transfer, other than a negotiation, from a person
not entitled to enforce the instrument or a bank makes or obtains payment with respect to the
instrument for a person not entitled to enforce the instrument or receive payment. An action for
conversion of an instrument may not be brought by (i) the issuer or acceptor of the instrument or
(ii) a payee or endorsee who did not receive delivery of the instrument either directly or through
delivery to an agent or a co-payee.
(b) In an action under subsection (a), the measure of liability is presumed to be the amount
payable on the instrument, but recovery may not exceed the amount of the plaintiff's interest in
the instrument.
(c) A representative, other than a depositary bank, who has in good faith dealt with an
instrument or its proceeds on behalf of one who was not the person entitled to enforce the
instrument is not liable in conversion to that person beyond the amount of any proceeds that it
has not paid out.
History: 1992 c 565 s 60