Subject to Article 3 of this title concerning conversion of instruments (Code Section 11-3-420) and restrictive indorsements (Code Section 11-3-206), 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.
(Code 1933, § 109A-4 - 203, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 1996, p. 1306, § 6.)
RESEARCH REFERENCES
Am. Jur. 2d.
- 11 Am. Jur. 2d, Banks and Financial Institutions, § 976.
C.J.S.- 9 C.J.S., Banks and Banking, § 383 et seq.
U.L.A.- Uniform Commercial Code (U.L.A.) § 4-203.