Effect of instructions

Subject to chapter 57A-3 concerning conversion of instruments (§ 57A-3-420 ) and restrictive endorsements (§ 57A-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. Source: SL 1994, ch 368, § 4-203.