Subject to Article 3 concerning conversion of instruments (G.S. 25-3-420) and restrictive indorsements (G.S. 25-3-206), 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.
N.C. Gen. Stat. § 25-4-203
Effect of instructions
Known as the Uniform Commercial Code
The act spans §§ 25–25 (616 sections).
1965, c. 700, s. 1; 1995, c. 232, s. 2.
Official source: North Carolina General Assembly. Reproduced from public-domain North Carolina statutes; confirm against the official source for the current text. Not legal advice.