§ 554.12208

554.12208 Misdescription of intermediary bank or beneficiary’s bank. 1. This subsection applies to a payment order identifying an intermediary bank or the beneficiary’s bank only by an identifying number. 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 identifiesa bank. b. The sender shall compensate the receiving bank for any loss and expenses incurred by the receiving bank as a result of the receiving bank’s reliance on the number in executing orattempting 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 identifydifferent 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 itexecutes the sender’s order, does not know that the name and number identify differentpersons. The receiving bank need not determine whether the name and number refer tothe same person or whether the number refers to a bank.

er, does not know that the name and number identify differentpersons. The receiving bank need not determine whether the name and number refer tothe same person or whether the number refers to a bank. The sender shall compensate thereceiving bank for any loss and expenses incurred by the receiving bank as a result of thereceiving bank’s 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 numberas the proper identification of the intermediary or beneficiary’s bank even if it identifies aperson different from the bank identified by name, the rights and obligations of the senderand the receiving bank are governed by paragraph 'a', as though the sender were a bank.Proof of notice may be made by any admissible evidence. The receiving bank satisfies theburden of proof if it proves that the sender, before the payment order was accepted, signed awriting stating the information to which the notice relates. c.

evidence. The receiving bank satisfies theburden of proof if it proves that the sender, before the payment order was accepted, signed awriting 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 the receiving bank executes the sender’s order, does not know that the name andnumber identify different persons. The receiving bank need not determine whether the nameand 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 abreach of the obligation stated in section 554.12302, subsection 1, paragraph 'a'. 92 Acts, ch 1146, §16 Sat Dec 23 11:02:52 2023 Iowa Code 2024, Section 554.12208 (24, 0)