Section 4-203 Effect of Instructions - Massachusetts Statutes

Section 4-203. Subject to Article 3 concerning conversion of instruments (section 3-420) and restrictive indorsements (section 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.