Anyone other than a bank,who purchases a check indorsed "for deposit only," has converted it;unless the indorser received the amount paid for the check or the bank deposited the check in the indorser's account.

Question

Quizplus · Accepted Answer

In the case of a check indorsed "for deposit" or "for collection," any person other than a bank who purchases the check is considered to have converted the check unless (1)the indorser received the amount paid for it or (2)the bank applied the amount of the check consistently with the indorsement.

Anyone Other Than a Bank,who Purchases a Check Indorsed "For