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Office of the Revisor of Statutes

336.4A-208 MISDESCRIPTION OF INTERMEDIARY BANK OR BENEFICIARY'S
BANK.
(a) 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) 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 subsection (b)(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 336.4A-302(a)(1).
History: 1990 c 582 art 1 s 16