The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 9A V.S.A. § 3-420)
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§ 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) of this section, 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. (Added 1993, No. 158 (Adj. Sess.), § 12, eff. Jan. 1, 1995.)