§ 6A-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 indorsee 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 of Section.P.L. 2000, ch. 238, § 3; P.L. 2000, ch. 421, § 3.
Structure Rhode Island General Laws
Title 6A - Uniform Commercial Code
Chapter 6A-3 - Negotiable Instruments
Section 6A-3-401. - Signature.
Section 6A-3-402. - Signature by representative.
Section 6A-3-403. - Unauthorized signature.
Section 6A-3-404. - Impostors — Fictitious payees.
Section 6A-3-405. - Employer’s responsibility for fraudulent indorsement by employee.
Section 6A-3-406. - Negligence contributing to forged signature or alteration of instrument.
Section 6A-3-407. - Alteration.
Section 6A-3-408. - Drawee not liable on unaccepted draft.
Section 6A-3-409. - Acceptance of draft — Certified check.
Section 6A-3-410. - Acceptance varying draft.
Section 6A-3-411. - Refusal to pay cashier’s checks, teller’s checks, and certified checks.
Section 6A-3-412. - Obligation of issuer of note or cashier’s check.
Section 6A-3-413. - Obligation of acceptor.
Section 6A-3-414. - Obligation of drawer.
Section 6A-3-415. - Obligation of indorser.
Section 6A-3-416. - Transfer warranties.
Section 6A-3-417. - Presentment warranties.
Section 6A-3-418. - Payment or acceptance by mistake.