Kentucky Revised Statutes · § 355.4-203 — Effect of instructions

Subject to Article 3 of this chapter concerning conversion of instruments (KRS 355.3-420) and restrictive indorsements (KRS 355.3-206), 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.