Vermont § 420 - § 3—420.

§ 420. § 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) of this 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. (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 1993, No. 158 (Adj. Sess.), § 12, eff. Jan. 1, 1995.)