Sec. 4.203. EFFECT OF INSTRUCTIONS. Subject to Chapter 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.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1, 1967. Amended by Acts 1995, 74th Leg., ch. 921, Sec. 4, eff. Jan. 1, 1996.
Structure Texas Statutes
Title 1 - Uniform Commercial Code
Chapter 4 - Bank Deposits and Collections
Subchapter B. 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. Depository 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