{"data":{"id":"us-ky/krs-355.3-420","jurisdiction":"us-ky","citation":"KRS 355.3-420","heading":"Conversion of instrument.","body":"(1) The law applicable to conversion of personal property applies to instruments. An\ninstrument is also converted if it is taken by transfer, other than a negotiation, from\na person not entitled to enforce the instrument or a bank makes or obtains payment\nwith respect to the instrument for a person not entitled to enforce the instrument or\nreceive payment. An action for conversion of an instrument may not be brought by:\n(a) The issuer or acceptor of the instrument; or\n(b) A payee or indorsee who did not receive  delivery of the instrument either\ndirectly or through delivery to an agent or a co-payee.\n(2) In an action under subsection (1) of this section, the measure of liability is presumed\nto be the amount payable on the instrument, but recovery may not exceed t he\namount of the plaintiff's interest in the instrument.\n(3) A representative, other than a depositary bank, who has in good faith dealt with an\ninstrument or its proceeds on behalf of one who was not the person entitled to\nenforce the instrument is not li able in conversion to that person beyond the amount\nof any proceeds that it has not paid out.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33490","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:44Z","sha256":"831bd3b1dd359a69fb5691cf4cc0d34a9b5097174f5be6e4b8c93b7b3dd4eefc","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.3-419","next":"us-ky/krs-355.3-501"},"notice":"GroundRules: Original legal text. Not legal advice."}