Subject to Chapter 3 concerning conversion of instruments (Section 36-3-420) and restrictive indorsements (Section 36-3-206), 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.
S.C. Code Ann. § 36-4-203
Effect of instructions
Known as the Uniform Commercial Code
The act spans §§ 36–36 (519 sections).
1962 Code SECTION 10.4-203; 1966 (54) 2716; 2008 Act No. 204, SECTION 3, eff July 1, 2008.
Official source: South Carolina Legislature. Reproduced from public-domain South Carolina statutes; confirm against the official source for the current text. Not legal advice.