Subject to Chapter 3 concerning conversion of instruments (Section 3.420) and restrictive indorsements (Section 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.
Tex. Bus. & Com. Code § 4.203
EFFECT OF INSTRUCTIONS
Known as the Uniform Commercial Code
The act spans §§ 1–12 (616 sections).
Applied in 1 court decision — leading case New Ulm State Bank v. Brown (1977)
Most recently applied in New Ulm State Bank v. Brown (August 1977)
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff
Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.