Legislation
SECTION 4-203
Effect of Instructions
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 4, PART 2
Section 4--203. Effect of Instructions.
Subject to the provisions of Article 3 concerning conversion of
instruments (Section 3--419) and the provisions of both Article 3 and
this Article concerning restrictive indorsements only a collecting
bank's transferor can give instructions which affect the bank or
constitute notice to it and a collecting bank is not liable to prior
parties for any action taken pursuant to such instructions or in
accordance with any agreement with its transferor.
Subject to the provisions of Article 3 concerning conversion of
instruments (Section 3--419) and the provisions of both Article 3 and
this Article concerning restrictive indorsements only a collecting
bank's transferor can give instructions which affect the bank or
constitute notice to it and a collecting bank is not liable to prior
parties for any action taken pursuant to such instructions or in
accordance with any agreement with its transferor.