Effect of instructions.

Subject to Article 3 concerning conversion of instruments ( section 554.3420 ) and restrictive endorsements ( section 554.3206 ), 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. [C66, 71, 73, 75, 77, 79, 81, §554.4203 ] 94 Acts, ch 1167, §90, 122