Indiana Code 26-1-3.1-420. Conversion of instrument
Current as of: 2023 | Check for updates
|
Other versions
Sec. 420. (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:
(2) a payee or endorsee who did not receive delivery of the instrument either directly or through delivery to an agent or a co-payee.
(1) the issuer or acceptor of the instrument; or
Terms Used In Indiana Code 26-1-3.1-420
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Plaintiff: The person who files the complaint in a civil lawsuit.
- Statute: A law passed by a legislature.
(b) Notwithstanding IC 34-24-3-1 or any other statute providing a measure of damages for conversion, in an action under subsection (a) for conversion of an instrument, 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.
As added by P.L.222-1993, SEC.5. Amended by P.L.1-1998, SEC.135.