Subject to Article 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.
D.C. Code § 28:4-203
Effect of instructions
Known as the Uniform Commercial Code
The act spans §§ 28:10-101 to 28:9-809 (639 sections).
Dec. 30, 1963, 77 Stat. 699, Pub
Official source: D.C. Law Library (Council of the District of Columbia). Reproduced from public-domain District of Columbia statutes; confirm against the official source for the current text. Not legal advice.