75-4-203 - Effect of instructions.
§ 75-4-203. Effect of instructions.
Subject to Chapter 3 concerning conversion of instruments (Section 75-3-420) and restrictive indorsements (Section 75-3-206), only a collecting bank's transferor can give instructions that affect the bank or constitute notice to it, and a collecting bank is not liable to prior parties for any action taken pursuant to the instructions or in accordance with any agreement with its transferor.
Sources: Codes, 1942, § 41A:4-203; Laws, 1966, ch. 316, § 4-203; Laws, 1992, ch. 420, § 85, eff from and after January 1, 1993.