4-203. Effect of instructions.

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.

Source:Laws 1963, c. 544, Art. IV, § 4-203, p. 1817; Laws 1991, LB 161, § 85.

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