Subject to the provisions of Division 3 concerning conversion of instruments (Section 3419) and the provisions of both Division 3 and this division concerning restrictive endorsements only a collecting bank's transferor can give instructions which affect the bank or constitute notice to it and a collecting bank is not liable to prior parties for any action taken pursuant to such instructions or in accordance with any agreement with its transferor.
Effect of Instructions
13 GCA § 4203, under Bank Deposits and Collections.
13 GCA § 4203