§ 41-04.1-16 — (4A-208) Misdescription of intermediary bank or beneficiary's bank

North Dakota § 41-04.1-16

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-04.1: Funds Transfers

Text

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 execution 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 a 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
subdivision 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 record 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 subdivision a of subsection 1 of
section 41-04.1-22.