8.4A-208 - A-208. Misdescription of intermediary bank or beneficiary's bank.
§ 8.4A-208. Misdescription of intermediary bank or beneficiary's bank.
(a) This subsection applies to a payment order identifying an intermediarybank or the beneficiary's bank only by an identifying number.
(1) The receiving bank may rely on the number as the proper identification ofthe intermediary or beneficiary's bank and need not determine whether thenumber identifies a bank.
(2) The sender is obliged to compensate the receiving bank for any loss andexpenses incurred by the receiving bank as a result of its reliance on thenumber in executing or attempting to execute the order.
(b) This subsection applies to a payment order identifying an intermediarybank or the beneficiary's bank both by name and an identifying number if thename and number identify different persons.
(1) If the sender is a bank, the receiving bank may rely on the number as theproper identification of the intermediary or beneficiary's bank if thereceiving bank, when it executes the sender's order, does not know that thename and number identify different persons. The receiving bank need notdetermine whether the name and number refer to the same person or whether thenumber 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 proves that thesender, before the payment order was accepted, had notice that the receivingbank 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 senderand the receiving bank are governed by subdivision (b) (1) of this section,as though the sender were a bank. Proof of notice may be made by anyadmissible evidence. The receiving bank satisfies the burden of proof if itproves that the sender, before the payment order was accepted, signed inwriting stating the information to which the notice relates.
(3) Regardless of whether the sender is a bank, the receiving bank may relyon the name as the proper identification of the intermediary or beneficiary'sbank if the receiving bank, at the time it executes the sender's order, doesnot know that the name and number identify different persons. The receivingbank 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 differentpersons, reliance on either the name or the number in executing the sender'spayment order is a breach of the obligation stated in subdivision (a) (1) of§ 8.4A-302.
(1990, c. 9.)