Subject to Chapter 3 of this subtitle concerning conversion of instruments (§ 4-3-420) and restrictive indorsements (§ 4-3-206), 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. Acts 1961, No. 185, § 4-203; A.S.A. 1947, § 85-4-203; Acts 1991, No. 572, § 6.
Structure Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 1 - Uniform Commercial Code
Chapter 4 - Bank Deposits and Collections
Part 2 - Collection of Items — Depositary and Collecting Banks
§ 4-4-202. Responsibility for collection or return — When action timely
§ 4-4-203. Effect of instructions
§ 4-4-204. Methods of sending and presenting — Sending directly to payor bank
§ 4-4-205. Depositary bank holder of unindorsed item
§ 4-4-206. Transfer between banks
§ 4-4-207. Transfer warranties
§ 4-4-208. Presentment warranties
§ 4-4-209. Encoding and retention warranties
§ 4-4-210. Security interest of collecting bank in items, accompanying documents, and proceeds
§ 4-4-211. When bank gives value for purposes of holder in due course
§ 4-4-213. Medium and time of settlement by bank
§ 4-4-214. Right of charge-back or refund — Liability of collecting bank — Return of item