§490:4A-208  Misdescription of intermediary
bank or beneficiary's bank.  (a)  This subsection applies to a payment
order identifying an intermediary bank or the beneficiary's bank only by an
identifying number.



(1)  The receiving bank may rely on the number as the
proper identification of the intermediary or beneficiary's bank and need not
determine whether the number identifies a bank.



(2)  The sender is obliged to compensate the receiving
bank for any loss and expenses incurred by the receiving bank as a result of
its reliance on the number in executing or attempting to execute the order.



(b)  This subsection applies to a payment order
identifying an intermediary bank or the beneficiary's bank both by name and an
identifying number if the name and number identify different persons.



(1)  If the sender is a bank, the receiving bank may
rely on the number as the proper identification of the intermediary or
beneficiary's bank if the receiving bank, when it executes the sender's order,
does not know that the name and number identify different persons.  The
receiving bank need not determine whether the name and number refer to the same
person or whether the number refers to a bank.  The sender is obliged to
compensate the receiving bank for any loss and expenses incurred by the
receiving bank as a result of its reliance on the number in executing or
attempting to execute the order.



(2)  If the sender is not a bank and the receiving
bank proves that the sender, before the payment order was accepted, had notice
that the receiving bank might rely on the number as the proper identification
of the intermediary or beneficiary's bank even if it identifies a person
different from the bank identified by name, the rights and obligations of the
sender and the receiving bank are governed by paragraph (b)(1), as though the
sender were a bank.  Proof of notice may be made by any admissible evidence. 
The receiving bank satisfies the burden of proof if it proves that the sender,
before the payment order was accepted, signed a writing stating the information
to which the notice relates.



(3)  Regardless of whether the sender is a bank, the
receiving bank may rely on the name as the proper identification of the
intermediary or beneficiary's bank if the receiving bank, at the time it executes
the sender's order, does not know that the name and number identify different
persons.  The receiving bank need not determine whether the name and number
refer to the same person.



(4)  If the receiving bank knows that the name and
number identify different persons, reliance on either the name or the number in
executing the sender's payment order is a breach of the obligation stated in
section 490:4A-302(a)(1). [L 1991, c 41, pt of §1]