Texas § BC.3.420 - CONVERSION OF INSTRUMENT
Full text of Texas The Texas Constitution § BC.3.420 — CONVERSION OF INSTRUMENT, with citation guidance and answers to common questions.
§ BC.3.420. CONVERSION OF INSTRUMENT
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: (1) the issuer or acceptor of the instrument; or (2) 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, 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 by Acts 1995, 74th Leg., ch. 921, Sec. 1, eff. Jan. 1, 1996. SUBCHAPTER E. DISHONOR
Frequently Asked Questions About Texas § BC.3.420
What does The Texas Constitution § BC.3.420 cover?
Section BC.3.420 ("CONVERSION OF INSTRUMENT") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § BC.3.420?
A common citation format is "The Texas Constitution § BC.3.420" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § BC.3.420 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.