{"data":{"id":"us-ky/krs-355.4a-207","jurisdiction":"us-ky","citation":"KRS 355.4A-207","heading":"Misdescription of beneficiary.","body":"(1) Subject to subsection (2) of this section, if, in a payment order received by the\nbeneficiary's bank, the name, bank account number, or other identification of the\nbeneficiary refers to a nonexistent or unidentifiable person or account, no person\nhas rights as a beneficiary of the order and acceptance of the order cannot occur.\n(2) If a payment order received by the beneficiary's bank identifies the beneficiary both\nby name and by an identifying or bank account number and the name and number\nidentify different persons, the following rules apply:\n(a) Except as otherwise provided in subsection (3) of this section:\n1. If the beneficiary's bank does not know that the name and number refer\nto different persons, it may rely on the number as the proper\nidentification of the beneficiary of the order; and\n2. The beneficiary's bank need not determine whether the name and\nnumber refer to the same person; and\n(b) 1. If the beneficiary's bank pays the person identified by name or knows\nthat the name and number identify di fferent persons, no person has\nrights as beneficiary except the person paid by the beneficiary's bank if\nthat person was entitled to receive payment from the originator of the\nfunds transfer.\n2. If no person has rights as beneficiary, acceptance of the ord er cannot\noccur.\n(3) If a payment order described in subsection (2) of this section is accepted, the\noriginator's payment order described the beneficiary inconsistently by name and\nnumber, and the beneficiary's bank pays the person identified by number as\npermitted by subsection (2)(a) of this section, the following rules apply:\n(a) If the originator is a bank, the originator is obliged to pay its order; and\n(b) 1. If the originator is not a bank and proves that the person identified by\nnumber was not entitled to receive paymen t from the originator, the\noriginator is not obliged to pay its order unless the originator's bank\nproves that the originator, before acceptance of the originator's order,\nhad notice that payment of a payment order issued by the originator\nmight be made by the beneficiary's bank on the basis of an identifying or\nbank account number even if it identifies a person different from the\nnamed beneficiary.\n2. Proof of notice may be made by any admissible evidence.\n3. The originator's bank satisfies the burden of p roof if it proves that the\noriginator, before the payment order was accepted, signed a record\nstating the information to which the notice relates.\n(4) In a case governed by subsection (2)(a) of this section, if the beneficiary's bank\nrightfully pays the pe rson identified by number and that person was not entitled to\nreceive payment from the originator, the amount paid may be recovered from that\nperson to the extent allowed by the law governing mistake and restitution as\nfollows:\n(a) If the originator is obliged to pay its payment order as stated in subsection (3)\nof this section, the originator has the right to recover; and\n(b) If the originator is not a bank and is not obliged to pay its payment order, the\noriginator's bank has the right to recover.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55654","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"8f0a71151c17e5a54b82df197a915167d3202e88feae9b694cec8be30f005ca9","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.4a-206","next":"us-ky/krs-355.4a-208"},"notice":"GroundRules: Original legal text. Not legal advice."}