Subject to Title 3 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.
Structure Maryland Statutes
Title 4 - Bank Deposits and Collections
Subtitle 2 - Collection of Items: Depositary and Collecting Banks
Section 4-202 - Responsibility for Collection or Return; When Action Timely
Section 4-203 - Effect of Instructions
Section 4-204 - Methods of Sending and Presenting; Sending Directly to Payor Bank
Section 4-205 - Depositary Bank Holder of Unindorsed Item
Section 4-206 - Transfer Between Banks
Section 4-207 - Transfer Warranties
Section 4-208 - Presentment Warranties
Section 4-209 - Encoding and Retention Warranties
Section 4-210 - Security Interest of Collecting Bank in Items, Accompanying Documents, and Proceeds
Section 4-211 - When Bank Gives Value for Purposes of Holder in Due Course
Section 4-213 - Medium and Time of Settlement by Bank
Section 4-214 - Right of Charge-Back or Refund; Liability of Collecting Bank; Return of Item