TITLE 28

COMMERCIAL TRANSACTIONS

CHAPTER 4

UNIFORM COMMERCIAL CODE — BANK DEPOSITS AND COLLECTIONS

PART 2.

COLLECTION OF ITEMS — DEPOSITARY AND COLLECTING BANKS

28-4-203.  Effect of instructions. Subject to the provisions of chapter 3 concerning conversion of instruments (section 28-3-420) and restrictive indorsements (section 28-3-206), 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:

[28-4-203, added 1967, ch. 161, sec. 4-203, p. 351; am. 1993, ch. 288, sec. 17, p. 1059.]