State Codes and Statutes
Statutes > Utah > Title-70a > Chapter-04a > 70a-4a-20870A-4a-208. Misdescription of intermediary bank or beneficiary's bank.
(1) This subsection applies to a payment order identifying an intermediary bank orbeneficiary's bank by an identifying number.
(a) The receiving bank may rely on the number as the proper identification of theintermediary 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 expensesincurred by the receiving bank as a result of its reliance on the number in executing or attemptingto execute the order.
(2) This subsection applies to a payment order identifying an intermediary bank orbeneficiary's bank both by name and an identifying number if the name and number identifydifferent persons.
(a) If the sender is a bank, the receiving bank may rely on the number as the properidentification of the intermediary or beneficiary's bank if the receiving bank, when it executes thesender's order, does not know that the name and number identify different persons. Thereceiving bank need not determine whether the name and number refer to the same person orwhether the number refers to a bank. The sender is obliged to compensate the receiving bank forany loss and expenses incurred by the receiving bank as a result of its reliance on the number inexecuting or attempting to execute the order.
(b) If the sender is not a bank and the receiving bank proves that the sender, before thepayment order was accepted, had notice that the receiving bank might rely on the number as theproper identification of the intermediary or beneficiary's bank even if it identifies a persondifferent from the bank identified by name, the rights and obligations of the sender and thereceiving bank are governed by Subsection (2)(a), as though the sender were a bank. Proof ofnotice may be made by any admissible evidence. The receiving bank satisfies the burden ofproof if it proves that the sender, before the payment order was accepted, signed a writing statingthe information to which the notice relates.
(c) Regardless of whether the sender is a bank, the receiving bank may rely on the nameas the proper identification of the intermediary or beneficiary's bank if the receiving bank, at thetime it executes the sender's order, does not know that the name and number identify differentpersons. The receiving bank need not determine whether the name and number refer to the sameperson.
(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 ofthe obligation stated in Subsection 70A-4a-302(1)(a).
Amended by Chapter 237, 1993 General Session
