2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 4A2 - Issue and Acceptance of Payment Order
Section 4A207 - Misdescription of beneficiary

     § 4A207.  Misdescription of beneficiary.
        (a)  Reference to nonexistent or unidentifiable person or
     account.--Subject to subsection (b), if, in a payment order
     received by the beneficiary's bank, the name, bank account
     number or other identification of the beneficiary refers to a
     nonexistent or unidentifiable person or account, no person has
     rights as a beneficiary of the order and acceptance of the order
     cannot occur.
        (b)  Name and account number identify different persons.--If
     a payment order received by the beneficiary's bank identifies
     the beneficiary both by name and by an identifying or bank
     account number and the name and number identify different
     persons, the following rules apply:
            (1)  Except as otherwise provided in subsection (c), if
        the beneficiary's bank does not know that the name and number
        refer to different persons, it may rely on the number as the
        proper identification of the beneficiary of the order. The
        beneficiary's bank need not determine whether the name and
        number refer to the same person.
            (2)  If the beneficiary's bank pays the person identified
        by name or knows that the name and number identify different
        persons, no person has rights as beneficiary except the
        person paid by the beneficiary's bank if that person was
        entitled to receive payment from the originator of the funds
        transfer. If no person has rights as beneficiary, acceptance
        of the order cannot occur.
        (c)  Applicable rules when bank pays person identified by
     number.--If a payment order described in subsection (b) is
     accepted, the originator's payment order described the
     beneficiary inconsistently by name and number and the
     beneficiary's bank pays the person identified by number as
     permitted by subsection (b)(1), the following rules apply:
            (1)  If the originator is a bank, the originator is
        obliged to pay its order.
            (2)  If the originator is not a bank and proves that the
        person identified by number was not entitled to receive
        payment from the originator, the originator is not obliged to
        pay its order unless the originator's bank proves that the
        originator, before acceptance of the originator's order, had
        notice that payment of a payment order issued by the
        originator might be made by the beneficiary's bank on the
        basis of an identifying or bank account number even if it
        identifies a person different from the named beneficiary.
        Proof of notice may be made by any admissible evidence. The
        originator's bank satisfies the burden of proof if it proves
        that the originator, before the payment order was accepted,
        signed a writing stating the information to which the notice
        relates.
        (d)  When person identified by number not entitled to receive
     payment.--In a case governed by subsection (b)(1), if the
     beneficiary's bank rightfully pays the person identified by
     number and that person was not entitled to receive payment from
     the originator, the amount paid may be recovered from that
     person to the extent allowed by the law governing mistake and
     restitution as follows:
            (1)  If the originator is obliged to pay its payment
        order as stated in subsection (c), the originator has the
        right to recover.
            (2)  If the originator is not a bank and is not obliged
        to pay its payment order, the originator's bank has the right
        to recover.

        Cross References.  Section 4A207 is referred to in section
     4A402 of this title.