§ 6A-4.1-208 - Misdescription of intermediary bank or beneficiary's bank.
SECTION 6A-4.1-208
§ 6A-4.1-208 Misdescription ofintermediary bank or beneficiary's bank. – (a) This subsection applies to a payment order identifying an intermediary bankor the beneficiary's bank only by an identifying number.
(1) The receiving bank may rely on the number as the properidentification of the intermediary or beneficiary's bank and need not determinewhether the number identifies a bank.
(2) The sender is obliged to compensate the receiving bankfor any loss and expenses incurred by the receiving bank as a result of itsreliance on the number in executing or attempting to execute the order.
(b) This subsection applies to a payment order identifying anintermediary bank or the beneficiary's bank both by name and an identifyingnumber if the name and number identify different persons.
(1) If the sender is a bank, the receiving bank may rely onthe number as the proper identification of the intermediary or beneficiary'sbank if the receiving bank, when it executes the sender's order, does not knowthat the name and number identify different persons. The receiving bank neednot determine whether the name and number refer to the same person or whetherthe number refers to a bank. The sender is obliged to compensate the receivingbank for any loss and expenses incurred by the receiving bank as a result ofits reliance on the number in executing or attempting to execute the order.
(2) If the sender is not a bank and the receiving bank provesthat the sender, before the payment order was accepted, had notice that thereceiving bank might rely on the number as the proper identification of theintermediary or beneficiary's bank even if it identifies a person differentfrom the bank identified by name, the rights and obligations of the sender andthe receiving bank are governed by subsection (b)(1), as though the sender werea bank. Proof of notice may be made by any admissible evidence. The receivingbank satisfies the burden of proof if it proves that the sender, before thepayment order was accepted, signed a writing stating the information to whichthe notice relates.
(3) Regardless of whether the sender is a bank, the receivingbank may rely on the same as the proper identification of the intermediary orbeneficiary's bank if the receiving bank, at the time it executes the sender'sorder, does not know that the name and number identify different persons. Thereceiving bank need not determine whether the name and number refer to the sameperson.
(4) If the receiving bank knows that the name and numberidentify different persons, reliance on either the name or the number inexecuting the sender's payment order is a breach of the obligation stated in§ 6A-4.1-302(a)(1).