§ 34.1-3-420 — Conversion of instrument

Wyoming § 34.1-3-420

• Jurisdiction: Wyoming
• Title 34.1: Uniform Commercial Code
• Art. 3: NEGOTIABLE INSTRUMENTS

Text

(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 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.
PART 5
DISHONOR