47-4-203 - Effect of instructions.

47-4-203. Effect of instructions.

Subject to chapter 3 of this title concerning conversion of instruments (§ 47-3-420) and restrictive endorsements (§ 47-3-206), 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.

[Acts 1963, ch. 81, § 1 (4-203); 1995, ch. 397, § 3.]