Sec. 208. (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 subdivision (1), 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.
(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 IC 26-1-4.1-302(a)(1).
As added by P.L.189-1991, SEC.4.
Structure Indiana Code
Article 1. Uniform Commercial Code
26-1-4.1-103. Payment Order—definitions
26-1-4.1-104. Funds Transfer—definitions
26-1-4.1-105. Other Definitions
26-1-4.1-106. Time Payment Order Is Received
26-1-4.1-107. Federal Reserve Regulations and Operating Circulars
26-1-4.1-108. Exclusion of Consumer Transactions Governed by Federal Law
26-1-4.1-201. "Security Procedure"
26-1-4.1-202. Authorized and Verified Payment Orders
26-1-4.1-203. Unenforceability of Certain Verified Payment Orders
26-1-4.1-205. Erroneous Payment Orders
26-1-4.1-206. Transmission of Payment Order Through Funds-Transfer or Other Communication System
26-1-4.1-207. Misdescription of Beneficiary
26-1-4.1-208. Misdescription of Intermediary Bank or Beneficiary's Bank
26-1-4.1-209. Acceptance of Payment Order
26-1-4.1-210. Rejection of Payment Order
26-1-4.1-211. Cancellation and Amendment of Payment Order
26-1-4.1-212. Liability and Duty of Receiving Bank Regarding Unaccepted Payment Order
26-1-4.1-301. Execution and Execution Date
26-1-4.1-302. Obligations of Receiving Bank in Execution of Payment Order
26-1-4.1-303. Erroneous Execution of Payment Order
26-1-4.1-304. Duty of Sender to Report Erroneously Executed Payment Order
26-1-4.1-305. Liability for Late or Improper Execution or Failure to Execute Payment Order
26-1-4.1-402. Obligation of Sender to Pay Receiving Bank
26-1-4.1-403. Payment by Sender to Receiving Bank
26-1-4.1-404. Obligation of Beneficiary's Bank to Pay and Give Notice to Beneficiary
26-1-4.1-405. Payment by Beneficiary's Bank to Beneficiary
26-1-4.1-406. Payment by Originator to Beneficiary; Discharge of Underlying Obligation
26-1-4.1-501. Variation by Agreement and Effect of Funds Transfer System Rule
26-1-4.1-502. Creditor Process Served on Receiving Bank; Setoff by Beneficiary's Bank
26-1-4.1-503. Injunction or Restraining Order With Respect to Funds Transfer
26-1-4.1-505. Preclusion of Objection to Debit of Customer's Account