Subject to chapter 3 of this title concerning conversion of instruments (§ 47-3-420 ) and restrictive endorsements (§ 47-3-206 ), 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.
Tenn. Code Ann. § 47-4-203
Effect of instructions
Known as the Uniform Commercial Code
The act spans §§ 47–47 (578 sections).
Acts 1963, ch. 81, § 1 (4-203); 1995, ch. 397, § 3.
Current official text: Tennessee Code (LexisNexis). Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Tennessee statutes; confirm against the official source for the current text. Not legal advice.