GroundRules
Ala. Code § 7-4-203: Effect of Instructions.
Where this section sits in the code
- Title 7 Commercial Code.
- Article 4 Bank Deposits and Collections.
- Part 2 Collection of Items: Depositary and Collecting Banks.
Subject to Article 3 concerning conversion of instruments (Section 7-3-420) and restrictive indorsements (Section 7-3-206), 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.
Collected 2026-09-03T14:01:52Z. Source file · JSON