4-A-208 - Misdescription of Intermediary Bank or Beneficiary's Bank.

Section 4-A-208. Misdescription  of  Intermediary  Bank or Beneficiary's Bank. (1)  This  subsection  applies  to  a  payment  order  identifying  an  intermediary  bank  or  the  beneficiary's  bank  only by an identifying  number. (a) 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. (b) 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)  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. (a) 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. (b) 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 (a) of subsection (2), 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. (c) 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. (d) 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  paragraph  (a)  of  subsection (1) of Section 4-A-302.