400.3-420. Conversion of instrument. - Missouri Statutes

Conversion of instrument.

400.3-420. (a) The law applicable to conversion ofpersonal property applies to instruments. An instrument is alsoconverted if it is taken by transfer, other than a negotiation,from a person not entitled to enforce the instrument or a bankmakes or obtains payment with respect to the instrument for aperson 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 orendorsee who did not receive delivery of the instrument eitherdirectly or through delivery to an agent or a co-payee.

(b) In an action under subsection (a), the measure ofliability is presumed to be the amount payable on the instrument,but recovery may not exceed the amount of the plaintiff'sinterest in the instrument.

(c) A representative, other than a depositary bank, who hasin good faith dealt with an instrument or its proceeds on behalfof one who was not the person entitled to enforce the instrumentis not liable to conversion to that person beyond the amount ofany proceeds that it has not paid out.

(L. 1992 S.B. 448)