KRS 355.4A-208: Misdescription of intermediary bank or beneficiary's bank.

(1) (a) This subsection applies to a payment order identifying an intermediary bank

or the beneficiary's bank only by an identifying number.

(b) The receiving bank may rely o n the number as the proper identification of the

intermediary or beneficiary's bank and need not determine whether the

number identifies a bank.

(c) 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) (a) 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.

(b) 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 kn ow that

the name and number identify different persons.

2. The receiving bank need not determine whether the name and number

refer to the same person or whether the number refers to a bank.

3. 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.

(c) 1. 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 (b) of this

subsection, as though the sender were a bank.

2. Proof of notice may be made by any admissible evidence.

3. 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.

(d) 1. 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.

2. The receiving bank need not determine whether the name and number

refer to the same person.

(e) 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).