554.3420 Conversion of instrument. 1. 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 personnot entitled to enforce the instrument or a bank makes or obtains payment with respect tothe instrument for a person not entitled to enforce the instrument or receive payment. Anaction for conversion of an instrument may not be brought by the issuer or acceptor of theinstrument or a payee or endorsee who did not receive delivery of the instrument eitherdirectly or through delivery to an agent or a co-payee. 2. In an action under subsection 1, 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 interestin the instrument. 3. 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 theinstrument is not liable in conversion to that person beyond the amount of any proceeds thatit has not paid out. trument 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 thatit has not paid out. 94 Acts, ch 1167, §67, 122; 2013 Acts, ch 30, §261Referred to in §554.4203 Sat Dec 23 01:57:02 2023 Iowa Code 2024, Section 554.3420 (25, 0)
Iowa Legal Code