Subject to Chapter 3 of this subtitle concerning conversion of instruments (§ 4-3-420 ) and restrictive indorsements (§ 4-3-206 ), 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.
Ark. Code Ann. § 4-4-203
Effect of instructions
Known as the Uniform Commercial Code
The act spans §§ 4–4 (597 sections).
Acts 1961, No. 185, § 4-203; A.S.A. 1947, § 85-4-203; Acts 1991, No. 572, § 6.
Current official text: Arkansas General Assembly. Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Arkansas statutes; confirm against the official source for the current text. Not legal advice.