§ 10:4A-208 — Misdescription of intermediary bank or beneficiary's bank

§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 Paragraph (1) of this Subsection, 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 record 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 R.S. 10:4A-302(a)(1).

Legislative History

Added by Acts 1990, No. 1079, §4, eff. Sept. 1, 1990; Acts 2024, No. 773, §1.