KRS 355.4-203: Effect of instructions.

Subject to Article 3 of this chapter concerning conversion of instruments (KRS 355.3 -

420) and restrictive indorsements (KRS 355.3 -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.