(810 ILCS 5/3-420)
(from Ch. 26, par. 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), 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, 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.
(Source: P.A. 87-582; 87-1135.)