§ 6A-4.1-207 Misdescription ofbeneficiary. – (a) Subject to subsection (b), if, in a payment order received by thebeneficiary's bank, the name, bank account number, or other identification ofthe beneficiary refers to a nonexistent or unidentifiable person or account, noperson has rights as a beneficiary of the order and acceptance of the ordercannot occur.
(b) If a payment order received by the beneficiary's bankidentifies the beneficiary both by name and by an identifying or bank accountnumber and the name and number identify different persons, the following rulesapply:
(1) Except as otherwise provided in subsection (c), if thebeneficiary's bank does not know that the name and number refer to differentpersons, it may rely on the number as the proper identification of thebeneficiary of the order. The beneficiary's bank need not determine whether thename and number refer to the same person.
(2) If the beneficiary's bank pays the person identified byname or knows that the name and number identify different persons, no personhas rights as beneficiary except the person paid by the beneficiary's bank ifthat person was entitled to receive payment from the originator of the fundstransfer. If no person has rights as beneficiary, acceptance of the ordercannot occur.
(c) If (i) a payment order described in subsection (b) isaccepted, (ii) the originator's payment order described the beneficiaryinconsistently by name and number, and (iii) the beneficiary's bank pays theperson identified by number as permitted by subsection (b)(1), the followingrules apply:
(1) If the originator is a bank, the originator is obliged topay its order.
(2) If the originator is not a bank and proves that theperson identified by number was not entitled to receive payment from theoriginator, the originator is not obliged to pay its order unless theoriginator's bank proves that the originator, before acceptance of theoriginator's order, had notice that payment of a payment order issued by theoriginator might be made by the beneficiary's bank on the basis of anidentifying or bank account number even if it identifies a person differentfrom the named beneficiary. Proof of notice may be made by any admissibleevidence. The originator's bank satisfies the burden of proof if it proves thatthe originator, before the payment order was accepted, signed a writing statingthe information to which the notice relates.
(d) In a case governed by subsection (b)(1), if thebeneficiary's bank rightfully pays the person identified by number and thatperson was not entitled to receive payment from the originator, the amount paidmay be recovered from that person to the extent allowed by the law governingmistake and restitution as follows:
(1) If the originator is obliged to pay its payment order asstated in subsection (c), the originator has the right to recover.
(2) If the originator is not a bank and is not obliged to payits payment order, the originator's bank has the right to recover.
§ 6A-4.1-207 Misdescription ofbeneficiary. – (a) Subject to subsection (b), if, in a payment order received by thebeneficiary's bank, the name, bank account number, or other identification ofthe beneficiary refers to a nonexistent or unidentifiable person or account, noperson has rights as a beneficiary of the order and acceptance of the ordercannot occur.
(b) If a payment order received by the beneficiary's bankidentifies the beneficiary both by name and by an identifying or bank accountnumber and the name and number identify different persons, the following rulesapply:
(1) Except as otherwise provided in subsection (c), if thebeneficiary's bank does not know that the name and number refer to differentpersons, it may rely on the number as the proper identification of thebeneficiary of the order. The beneficiary's bank need not determine whether thename and number refer to the same person.
(2) If the beneficiary's bank pays the person identified byname or knows that the name and number identify different persons, no personhas rights as beneficiary except the person paid by the beneficiary's bank ifthat person was entitled to receive payment from the originator of the fundstransfer. If no person has rights as beneficiary, acceptance of the ordercannot occur.
(c) If (i) a payment order described in subsection (b) isaccepted, (ii) the originator's payment order described the beneficiaryinconsistently by name and number, and (iii) the beneficiary's bank pays theperson identified by number as permitted by subsection (b)(1), the followingrules apply:
(1) If the originator is a bank, the originator is obliged topay its order.
(2) If the originator is not a bank and proves that theperson identified by number was not entitled to receive payment from theoriginator, the originator is not obliged to pay its order unless theoriginator's bank proves that the originator, before acceptance of theoriginator's order, had notice that payment of a payment order issued by theoriginator might be made by the beneficiary's bank on the basis of anidentifying or bank account number even if it identifies a person differentfrom the named beneficiary. Proof of notice may be made by any admissibleevidence. The originator's bank satisfies the burden of proof if it proves thatthe originator, before the payment order was accepted, signed a writing statingthe information to which the notice relates.
(d) In a case governed by subsection (b)(1), if thebeneficiary's bank rightfully pays the person identified by number and thatperson was not entitled to receive payment from the originator, the amount paidmay be recovered from that person to the extent allowed by the law governingmistake and restitution as follows:
(1) If the originator is obliged to pay its payment order asstated in subsection (c), the originator has the right to recover.
(2) If the originator is not a bank and is not obliged to payits payment order, the originator's bank has the right to recover.
§ 6A-4.1-207 Misdescription ofbeneficiary. – (a) Subject to subsection (b), if, in a payment order received by thebeneficiary's bank, the name, bank account number, or other identification ofthe beneficiary refers to a nonexistent or unidentifiable person or account, noperson has rights as a beneficiary of the order and acceptance of the ordercannot occur.
(b) If a payment order received by the beneficiary's bankidentifies the beneficiary both by name and by an identifying or bank accountnumber and the name and number identify different persons, the following rulesapply:
(1) Except as otherwise provided in subsection (c), if thebeneficiary's bank does not know that the name and number refer to differentpersons, it may rely on the number as the proper identification of thebeneficiary of the order. The beneficiary's bank need not determine whether thename and number refer to the same person.
(2) If the beneficiary's bank pays the person identified byname or knows that the name and number identify different persons, no personhas rights as beneficiary except the person paid by the beneficiary's bank ifthat person was entitled to receive payment from the originator of the fundstransfer. If no person has rights as beneficiary, acceptance of the ordercannot occur.
(c) If (i) a payment order described in subsection (b) isaccepted, (ii) the originator's payment order described the beneficiaryinconsistently by name and number, and (iii) the beneficiary's bank pays theperson identified by number as permitted by subsection (b)(1), the followingrules apply:
(1) If the originator is a bank, the originator is obliged topay its order.
(2) If the originator is not a bank and proves that theperson identified by number was not entitled to receive payment from theoriginator, the originator is not obliged to pay its order unless theoriginator's bank proves that the originator, before acceptance of theoriginator's order, had notice that payment of a payment order issued by theoriginator might be made by the beneficiary's bank on the basis of anidentifying or bank account number even if it identifies a person differentfrom the named beneficiary. Proof of notice may be made by any admissibleevidence. The originator's bank satisfies the burden of proof if it proves thatthe originator, before the payment order was accepted, signed a writing statingthe information to which the notice relates.
(d) In a case governed by subsection (b)(1), if thebeneficiary's bank rightfully pays the person identified by number and thatperson was not entitled to receive payment from the originator, the amount paidmay be recovered from that person to the extent allowed by the law governingmistake and restitution as follows:
(1) If the originator is obliged to pay its payment order asstated in subsection (c), the originator has the right to recover.
(2) If the originator is not a bank and is not obliged to payits payment order, the originator's bank has the right to recover.
