GA Code § 11-3-420 (2021)
2021 Georgia Code|Title 11 - Commercial Code|Article 3 - Negotiable Instruments|Part 4 - Liability of Parties|§ 11-3-420. Conversion of Instrument

  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.   In an action under subsection (a) of this Code 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.   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.     (Code 1981, §11-3-420, enacted by Ga. L. 1996, p. 1306, § 3.)   Law reviews.   - For article surveying recent judicial developments in commercial law, see 31 Mercer L. Rev. 13 (1979). For article surveying Georgia cases in the area of commercial law from June 1979 through May 1980, see 32 Mercer L. Rev. 11 (1980). For note, "The Law of Evidence in the Uniform Commercial Code," see 1 Ga. L. Rev. 44 (1966). For comment on Perini Corp. v. First Nat'l Bank, 553 F.2d 398 (5th Cir. 1977), see 27 Emory L.J. 393 (1978). For comment on Trust Co. of Columbus v. Refrigeration Supplies, Inc., 241 Ga. 406, 246 S.E.2d 282 (1978), discussing liability of collecting and payor banks for payment of check over missing endorsement of copayee, see 13 Ga. L. Rev. 677 (1979).   JUDICIAL DECISIONS   ANALYSIS    General Consideration   Measure of Damages   Commercial Reasonableness    RESEARCH REFERENCES   Am. Jur. 2d.   - 11 Am. Jur. 2d, Banks and Financial Institutions, § 918. 11 Am. Jur. 2d, Bills and Notes, §§ 138, 384, 386, 416. 18 Am. Jur. 2d, Conversion, § 47.   C.J.S.   - 9 C.J.S., Banks and Banking, § 382 et seq. 10 C.J.S., Bills and Notes, §§ 12 et seq., 80 et seq., 239. 89 C.J.S., Trover and Conversion, § 13 et seq.   U.L.A.   - Uniform Commercial Code (U.L.A.) § 3-420.   ALR.    - Who must bear loss from mistake in name, preventing payment of check before failure of drawee, 21 A.L.R. 1556.    Rights as between one who deposits commercial paper for collection without any indication on the paper of that purpose, and one who takes it in good faith from the depositary, 49 A.L.R. 1373; 58 A.L.R. 259.    Duty of depositor to turn over to bank forged checks, or checks with forged endorsements, which have been paid by bank, 60 A.L.R. 527.    Liability as between bank which issues and pays certificate of deposit and another bank which endorsed and collected it on faith of a forged endorsement of the payee's name, 62 A.L.R. 803.    Payment of check upon forged or unauthorized indorsement as affecting the right of the true owner against the bank, 69 A.L.R. 1076; 137 A.L.R. 874.    Who must bear loss as between drawer induced by fraud of employee or agent to issue check payable to nonexisting person or a person having no interest in the proceeds thereof, and one who cashes or pays it on the forged indorsement by such employee or agent of the name of such ostensible payee, 99 A.L.R. 439.    Right of drawee of forged check or draft to recover amount paid thereon, 121 A.L.R. 1056.    Right of drawee who paid check or draft bearing forged indorsement to recover against indorser prior to the one to whom payment was made, 127 A.L.R. 122.   Right and remedy of drawer of check against collecting bank which receives it on forged indorsement and collects it from drawee bank, 99 A.L.R.2d 637.   Procuring signature by fraud as forgery, 11 A.L.R.3d 1074.   Bank's liability to nonsigning payee for payment of check drawn to joint payees without obtaining indorsement by both, 47 A.L.R.3d 537.   Payee's right of recovery, in conversion under UCC § 3-419(1)(c), for money paid on unauthorized indorsement, 23 A.L.R.4th 855.   Bank's "reasonable commercial standards" defense under UCC § 3-419(3), 49 A.L.R.4th 888.   Payee's and drawer's right of recovery, in conversion under pre-1990 UCC § 3-419, or post-1990 UCC § 3-420, for money paid on unauthorized endorsement, 91 A.L.R.5th 89.   Drawer's right of recovery against depositary bank that accepts check with missing endorsement or in violation of restrictive covenant, 104 A.L.R.5th 459.