Michigan Laws 440.4203 – Collecting bank; instructions from transferor
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Terms Used In Michigan Laws 440.4203
- Bank: means a person engaged in the business of banking, including a saving bank, saving and loan association, credit union, or trust company. See Michigan Laws 440.4105
- Collecting bank: means a bank handling the item for collection except the payor bank. See Michigan Laws 440.4105
Subject to article 3 concerning conversion of instruments (section 3420) and restrictive endorsements (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.