4A208 - Misdescription of intermediary bank or beneficiary's bank.

     § 4A208.  Misdescription of intermediary bank or beneficiary's                bank.        (a)  Identification only by identifying number.--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)  Identification by name and identifying number;     identification of different persons.--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 (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 4A302(a)(1)        (relating to obligations of receiving bank in execution of        payment order).