Subject to Article 3 concerning conversion of instruments (Section 3-420) and restrictive indorsements (Section 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.
Structure Delaware Code
Article 4. Bank Deposits and Collections
Part 2. Collection of Items; Depositary and Collecting Banks
§ 4-202. Responsibility for collection or return; when action timely.
§ 4-203. Effect of instructions.
§ 4-204. Methods of sending and presenting; sending directly to payor bank.
§ 4-205. Depositary bank holder of unindorsed item.
§ 4-206. Transfer between banks.
§ 4-208. Presentment warranties.
§ 4-209. Encoding and retention warranties.
§ 4-210. Security interest of collecting bank in items, accompanying documents and proceeds.
§ 4-211. When bank gives value for purposes of holder in due course.
§ 4-213. Medium and time of settlement by bank.
§ 4-214. Right of charge-back or refund; liability of collecting bank; return of item.