8.3A-420 - A-420. Conversion of instrument. - Virginia Statutes

§ 8.3A-420. Conversion of instrument.

(a) The law applicable to conversion of personal property applies toinstruments. An instrument is also converted if it is taken by transfer,other than a negotiation, from a person not entitled to enforce theinstrument or a bank makes or obtains payment with respect to the instrumentfor a person not entitled to enforce the instrument or receive payment. Anaction for conversion of an instrument may not be brought by (i) the issueror acceptor of the instrument or (ii) a payee or endorsee who did not receivedelivery of the instrument either directly or through delivery to an agent ora co-payee.

(b) In an action under subsection (a), the measure of liability is presumedto be the amount payable on the instrument, but recovery may not exceed theamount of the plaintiff's interest in the instrument.

(c) A representative, other than a depositary bank, who has in good faithdealt with an instrument or its proceeds on behalf of one who was not theperson entitled to enforce the instrument is not liable in conversion to thatperson beyond the amount of any proceeds that it has not paid out.

(Code 1950, § 6-490; 1964, c. 219, § 8.3-419; 1992, c. 693.)