Commercial Code section 4203

Subject to Division 3 (commencing with Section 3101) concerning conversion of instruments (Section 3420) and restrictive indorsements (Section 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.

Source: Section 4203, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=COM§ionNum=4203.­ (updated Jan. 1, 1993; accessed Jun. 25, 2025).

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Verified:
Jun. 25, 2025

§ 4203's source at ca​.gov