§490:4A-207  Misdescription of beneficiary. 
(a)  Subject to subsection (b), if, in a payment order received by the
beneficiary's bank, the name, bank account number, or other identification of
the beneficiary refers to a nonexistent or unidentifiable person or account, no
person has rights as a beneficiary of the order and acceptance of the order
cannot occur.



(b)  If a payment order received by the
beneficiary's bank identifies the beneficiary both by name and by an
identifying or bank account number and the name and number identify different
persons, the following rules apply:



(1)  Except as otherwise provided in subsection (c),
if the beneficiary's bank does not know that the name and number refer to
different persons, it may rely on the number as the proper identification of
the beneficiary of the order.  The beneficiary's bank need not determine
whether the name and number refer to the same person.



(2)  If the beneficiary's bank pays the person
identified by name or knows that the name and number identify different
persons, no person has rights as beneficiary except the person paid by the
beneficiary's bank if that person was entitled to receive payment from the
originator of the funds transfer.  If no person has rights as beneficiary,
acceptance of the order cannot occur.



(c)  If (i) a payment order described in
subsection (b) is accepted, (ii) the originator's payment order described the
beneficiary inconsistently by name and number, and (iii) the beneficiary's bank
pays the person identified by number as permitted by subsection (b)(1), the
following rules apply:



(1)  If the originator is a bank, the originator is
obliged to pay its order.



(2)  If the originator is not a bank and proves that
the person identified by number was not entitled to receive payment from the
originator, the originator is not obliged to pay its order unless the
originator's bank proves that the originator, before acceptance of the
originator's order, had notice that payment of a payment order issued by the
originator might be made by the beneficiary's bank on the basis of an
identifying or bank account number even if it identifies a person different
from the named beneficiary.  Proof of notice may be made by any admissible
evidence.  The originator's bank satisfies the burden of proof if it proves
that the originator, before the payment order was accepted, signed a writing
stating the information to which the notice relates.



(d)  In a case governed by subsection (b)(1),
if the beneficiary's bank rightfully pays the person identified by number and
that person was not entitled to receive payment from the originator, the amount
paid may be recovered from that person to the extent allowed by the law
governing mistake and restitution as follows:



(1)  If the originator is obliged to pay its payment
order as stated in subsection (c), the originator has the right to recover.



(2)  If the originator is not a bank and is not
obliged to pay its payment order, the originator's bank has the right to
recover. [L 1991, c 41, pt of §1]