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April 26, 2024 Clear | 37°F
The 193rd General Court of the Commonwealth of Massachusetts

Section 4-203: Effect of Instructions

Section 4–203. Subject to Article 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.