Printable Format84-4-203. Effect of instructions. Subject to article 3 concerning conversion of instruments (K.S.A. 84-3-419) and restrictive endorsements (K.S.A. 84-3-206), 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: L. 1965, ch. 564, § 212; L. 1991, ch. 296, § 84; February 1, 1992.
KANSAS COMMENT, 1996
This section is identical to the 1995 Official Text and has not been substantially amended since 1965. A reference to Article 4 restrictive indorsements was deleted and the other amendments are primarily stylistic and are not meant to change the substantive law. Although this section has generated virtually no case law, it has an insulating effect on collecting banks.