9A V.S.A. § 4—203: Effect of instructions

Subject to Article 3 of this title concerning conversion of instruments (§ 3—420) and restrictive indorsements (§ 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.