                                 CODE OF VIRGINIA

CONVERSION OF INSTRUMENT (§ 8.3A-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 (i) the issuer or acceptor of the
instrument or (ii) a payee or endorsee 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&#8217;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: Code 1950, § 6-490; 1964, c. 219, § 8.3-419; 1992, c. 693.