400.4A-207. (a) Subject to subsection (b), if, in apayment order received by the beneficiary's bank, the name, bankaccount number, or other identification of the beneficiary refersto a nonexistent or unidentifiable person or account, no personhas rights as a beneficiary of the order and acceptance of theorder cannot occur.
(b) If a payment order received by the beneficiary's bankidentifies the beneficiary both by name and by an identifying orbank account number and the name and number identify differentpersons, the following rules apply:
(1) Except as otherwise provided in subsection 3 of thissection, if the beneficiary's bank does not know that the nameand number refer to different persons, it may rely on the numberas the proper identification of the beneficiary of the order.The beneficiary's bank need not determine whether the name andnumber refer to the same person.
(2) If the beneficiary's bank pays the person identified byname or knows that the name and number identify differentpersons, no person has rights as beneficiary except the personpaid by the beneficiary's bank if that person was entitled toreceive payment from the originator of the funds transfer. If noperson has rights as beneficiary, acceptance of the order cannotoccur.
(c) If (i) a payment order described in subsection (b) isaccepted, (ii) the originator's payment order described thebeneficiary inconsistently by name and number, and (iii) thebeneficiary's bank pays the person identified by number aspermitted by subsection (b)(1), the following rules apply:
(1) If the originator is a bank, the originator is obligedto pay its order.
(2) If the originator is not a bank and proves that theperson identified by number was not entitled to receive paymentfrom the originator, the originator is not obliged to pay itsorder unless the originator's bank proves that the originator,before acceptance of the originator's order, had notice thatpayment of a payment order issued by the originator might be madeby the beneficiary's bank on the basis of an identifying or bankaccount number even if it identifies a person different from thenamed beneficiary. Proof of notice may be made by any admissibleevidence. The originator's bank satisfies the burden of proof ifit proves that the originator, before the payment order wasaccepted, signed a writing stating the information to which thenotice relates.
(d) In a case governed by subsection (b)(1), if thebeneficiary's bank rightfully pays the person identified bynumber and that person was not entitled to receive payment fromthe originator, the amount paid may be recovered from that personto the extent allowed by the law governing mistake andrestitution as follows:
(1) If the originator is obliged to pay its payment orderas stated in subsection (c), the originator has the right torecover;
(2) If the originator is not a bank and is not obliged topay its payment order, the originator's bank has the right torecover.
400.4A-207. (a) Subject to subsection (b), if, in apayment order received by the beneficiary's bank, the name, bankaccount number, or other identification of the beneficiary refersto a nonexistent or unidentifiable person or account, no personhas rights as a beneficiary of the order and acceptance of theorder cannot occur.
(b) If a payment order received by the beneficiary's bankidentifies the beneficiary both by name and by an identifying orbank account number and the name and number identify differentpersons, the following rules apply:
(1) Except as otherwise provided in subsection 3 of thissection, if the beneficiary's bank does not know that the nameand number refer to different persons, it may rely on the numberas the proper identification of the beneficiary of the order.The beneficiary's bank need not determine whether the name andnumber refer to the same person.
(2) If the beneficiary's bank pays the person identified byname or knows that the name and number identify differentpersons, no person has rights as beneficiary except the personpaid by the beneficiary's bank if that person was entitled toreceive payment from the originator of the funds transfer. If noperson has rights as beneficiary, acceptance of the order cannotoccur.
(c) If (i) a payment order described in subsection (b) isaccepted, (ii) the originator's payment order described thebeneficiary inconsistently by name and number, and (iii) thebeneficiary's bank pays the person identified by number aspermitted by subsection (b)(1), the following rules apply:
(1) If the originator is a bank, the originator is obligedto pay its order.
(2) If the originator is not a bank and proves that theperson identified by number was not entitled to receive paymentfrom the originator, the originator is not obliged to pay itsorder unless the originator's bank proves that the originator,before acceptance of the originator's order, had notice thatpayment of a payment order issued by the originator might be madeby the beneficiary's bank on the basis of an identifying or bankaccount number even if it identifies a person different from thenamed beneficiary. Proof of notice may be made by any admissibleevidence. The originator's bank satisfies the burden of proof ifit proves that the originator, before the payment order wasaccepted, signed a writing stating the information to which thenotice relates.
(d) In a case governed by subsection (b)(1), if thebeneficiary's bank rightfully pays the person identified bynumber and that person was not entitled to receive payment fromthe originator, the amount paid may be recovered from that personto the extent allowed by the law governing mistake andrestitution as follows:
(1) If the originator is obliged to pay its payment orderas stated in subsection (c), the originator has the right torecover;
(2) If the originator is not a bank and is not obliged topay its payment order, the originator's bank has the right torecover.
400.4A-207. (a) Subject to subsection (b), if, in apayment order received by the beneficiary's bank, the name, bankaccount number, or other identification of the beneficiary refersto a nonexistent or unidentifiable person or account, no personhas rights as a beneficiary of the order and acceptance of theorder cannot occur.
(b) If a payment order received by the beneficiary's bankidentifies the beneficiary both by name and by an identifying orbank account number and the name and number identify differentpersons, the following rules apply:
(1) Except as otherwise provided in subsection 3 of thissection, if the beneficiary's bank does not know that the nameand number refer to different persons, it may rely on the numberas the proper identification of the beneficiary of the order.The beneficiary's bank need not determine whether the name andnumber refer to the same person.
(2) If the beneficiary's bank pays the person identified byname or knows that the name and number identify differentpersons, no person has rights as beneficiary except the personpaid by the beneficiary's bank if that person was entitled toreceive payment from the originator of the funds transfer. If noperson has rights as beneficiary, acceptance of the order cannotoccur.
(c) If (i) a payment order described in subsection (b) isaccepted, (ii) the originator's payment order described thebeneficiary inconsistently by name and number, and (iii) thebeneficiary's bank pays the person identified by number aspermitted by subsection (b)(1), the following rules apply:
(1) If the originator is a bank, the originator is obligedto pay its order.
(2) If the originator is not a bank and proves that theperson identified by number was not entitled to receive paymentfrom the originator, the originator is not obliged to pay itsorder unless the originator's bank proves that the originator,before acceptance of the originator's order, had notice thatpayment of a payment order issued by the originator might be madeby the beneficiary's bank on the basis of an identifying or bankaccount number even if it identifies a person different from thenamed beneficiary. Proof of notice may be made by any admissibleevidence. The originator's bank satisfies the burden of proof ifit proves that the originator, before the payment order wasaccepted, signed a writing stating the information to which thenotice relates.
(d) In a case governed by subsection (b)(1), if thebeneficiary's bank rightfully pays the person identified bynumber and that person was not entitled to receive payment fromthe originator, the amount paid may be recovered from that personto the extent allowed by the law governing mistake andrestitution as follows:
(1) If the originator is obliged to pay its payment orderas stated in subsection (c), the originator has the right torecover;
(2) If the originator is not a bank and is not obliged topay its payment order, the originator's bank has the right torecover.
