400.4A-208. Misdescription of intermediary bank or beneficiary's bank. - Missouri Statutes

Misdescription of intermediary bank or beneficiary's bank.

400.4A-208. (a) This subsection applies to a payment orderidentifying an intermediary bank or the beneficiary's bank onlyby an identifying number:

(1) The receiving bank may rely on the number as the properidentification of the intermediary or beneficiary's bank and neednot determine whether 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 aresult of its reliance on the number in executing or attemptingto execute the order.

(b) This subsection applies to a payment order identifyingan intermediary bank or the beneficiary's bank both by name andan identifying number if the name and number identify differentpersons.

(1) If the sender is a bank, the receiving bank may rely onthe number as the proper identification of the intermediary orbeneficiary's bank if the receiving bank, when it executes thesender's order, does not know that the name and number identifydifferent persons. The receiving bank need not determine whetherthe name and number refer to the same person or whether thenumber refers to a bank. The sender is obliged to compensate thereceiving bank for any loss and expenses incurred by thereceiving bank as a result of its reliance on the number inexecuting or attempting to execute the order.

(2) If the sender is not a bank and the receiving bankproves that the sender, before the payment order was accepted,had notice that the receiving bank might rely on the number asthe proper identification of the intermediary or beneficiary'sbank even if it identifies a person different from the bankidentified by name, the rights and obligations of the sender andthe receiving bank are governed by subsection (b)(1), as thoughthe sender were a bank. Proof of notice may be made by anyadmissible evidence. The receiving bank satisfies the burden ofproof if it proves that the sender, before the payment order wasaccepted, signed a writing stating the information to which thenotice relates.

(3) Regardless of whether the sender is a bank, thereceiving bank may rely on the name as the proper identificationof the intermediary or beneficiary's bank if the receiving bank,at the time it executes the sender's order, does not know thatthe name and number identify different persons. The receivingbank need not determine whether the name and number refer to thesame person.

(4) If the receiving bank knows that the name and numberidentify different persons, reliance on either the name or thenumber in executing the sender's payment order is a breach of theobligation stated in section 400.4A-302(a)(1).

(L. 1992 S.B. 448)