Final answer:
Upon receiving a cancellation instrument after recording, it must be compared with prior instructions to determine if disbursement should proceed. Option 2
Step-by-step explanation:
When a cancellation instrument is received after recording but prior to the disbursement of funds and documents, the proper course of action is to compare it with prior instructions. This ensures that the cancellation aligns with the agreed-upon procedure and protects against potential errors or fraud.
If the cancellation instrument contradicts previous instructions or seems inappropriate, further review is needed before proceeding with disbursement. It's crucial to maintain accuracy and integrity throughout the transaction process, and ignoring such instruments without review could lead to legal and financial complications. Option 2