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.
Alabama Legal Code
Section 7-4-203 - Effect of Instructions
Source: https://alison.legislature.state.al.us/code-of-alabama?section=7-4-203· Version 2026