§490:3-420  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. [L 1991, c 118, pt of §1]