California Commercial Code Section 3420
Legal Research Home >
California Laws > Commercial Code > California Commercial Code Section 3420
3420. (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 (1) the issuer or acceptor of the
instrument or (2) a payee or indorsee who did not receive delivery of
the instrument either directly or through delivery to an agent or a
copayee.
(b) In an action under subdivision (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.
Section: 3420
Last modified: February 22, 2013
|
