70A-3-420 - Conversion of instrument. - Utah Statutes

70A-3-420. Conversion of instrument.
(1) The law applicable to conversion of personal property applies to instruments. Aninstrument is also converted if it is taken by transfer, other than a negotiation, from a person notentitled to enforce the instrument or a bank makes or obtains payment with respect to theinstrument for a person not entitled to enforce the instrument or receive payment. An action forconversion of an instrument may not be brought by the issuer or acceptor of the instrument, or apayee or indorsee who did not receive delivery of the instrument either directly or throughdelivery to an agent or a copayee.
(2) In an action under Subsection (1), the measure of liability is presumed to be theamount payable on the instrument, but recovery may not exceed the amount of the plaintiff'sinterest in the instrument.
(3) A representative, other than a depositary bank, who has in good faith dealt with aninstrument or its proceeds on behalf of one who was not the person entitled to enforce theinstrument is not liable in conversion to that person beyond the amount of any proceeds that it hasnot paid out.

Enacted by Chapter 237, 1993 General Session