Subject to Chapter 3 concerning conversion of instruments (Section 36-3-420) and restrictive indorsements (Section 36-3-206), 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.

HISTORY: 1962 Code Section 10.4-203; 1966 (54) 2716; 2008 Act No. 204, Section 3, eff July 1, 2008. Definitional Cross References: "Action" Section 36-1-201(1) "Agreement" Section 36-1-201(3) "Bank" Section 36-4-105(1) "Collecting Bank" Section 36-4-105(5) "Indorsement" Section 36-3-204(a) "Instrument" Section 36-3-104(b) "Notice" Section 36-1-201(25) [see now Section 36-1-202] "Party" Section 36-3-103(a)(10)