Subject to Chapter 3 concerning conversion of instruments (Section 36-3-420) and restrictive indorsements (Section 36-3-206), 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. HISTORY: 1962 Code Section 10.4-203; 1966 (54) 2716; 2008 Act No. 204, Section 3, eff July 1, 2008.
South Carolina Legal Code