Montana Code 30-3-419. Conversion of instrument
30-3-419. Conversion of instrument. (1) The law applicable to conversion of personal property applies to instruments. An instrument is also converted if the instrument lacks an indorsement necessary for negotiation and it is purchased or taken for collection or the drawee takes the instrument and makes payment to a person not entitled to receive payment. An action for conversion of an instrument may not be brought by:
Terms Used In Montana Code 30-3-419
- Acceptor: means a drawee that has accepted a draft. See Montana Code 30-3-102
- Drawee: means a person ordered in a draft to make payment. See Montana Code 30-3-102
- Drawer: means a person that signs a draft as a person ordering payment. See Montana Code 30-3-102
- Good faith: means honesty in fact and the observance of reasonable commercial standards of fair dealing. See Montana Code 30-3-102
- Maker: means a person that signs a note as promisor of payment. See Montana Code 30-3-102
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- Plaintiff: The person who files the complaint in a civil lawsuit.
(a)the maker, drawer, or acceptor of an instrument; or
(b)a payee or indorsee who did not receive delivery of the instrument either directly or through delivery to an agent or copayee.
(2)In an action under subsection (1), 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.
(3)A representative, other than a depositary bank, that 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.