There is a newer version of the Kentucky Revised Statutes
2009 Kentucky Revised Statutes
Article 4A Funds Transfers
355.4A.208 Misdescription of intermediary bank or beneficiary's bank.
Download pdf(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 subsection (1)(b), 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 KRS 355.4A-302(1)(a). Effective: July 14, 1992
History: Created 1992 Ky. Acts ch. 116, sec. 39, effective July 14, 1992.
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