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. (Added 1993, No. 158 (Adj. Sess.), § 13, eff. Jan. 1, 1995.)
Vermont Legal Code