§ 25-4-203. Effect of instructions. - North Carolina Statutes

§25‑4‑203.  Effect of instructions.

Subject to Article 3concerning conversion of instruments (G.S. 25‑3‑420) andrestrictive indorsements (G.S. 25‑3‑206), only a collecting bank'stransferor can give instructions that affect the bank or constitute notice toit, and a collecting bank is not liable to prior parties for any action takenpursuant to the instructions or in accordance with any agreement with itstransferor. (1965, c. 700, s. 1; 1995, c. 232, s. 2.)