Section 4-A-208. Misdescription of Intermediary Bank or Beneficiary's

Bank.

(1) This subsection applies to a payment order identifying an
intermediary bank or the beneficiary's bank only by an identifying
number.

(a) 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.

(b) 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) 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.

(a) 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.

(b) 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 (a) of subsection (2), 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.

(c) 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.

(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 of the

obligation stated in paragraph (a) of subsection (1) of

Section 4-A-302.