Nevada § 104A.4207 - Misdescription of beneficiary

§ 104A.4207. Misdescription of beneficiary

1. Except as otherwise provided in subsection 2, 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. 2. 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: (a) Except as otherwise provided in subsection 3, 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. (b) 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. 3. If a payment order described in subsection 2 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 paragraph (a) of subsection

2, the following rules apply: (a) If the originator is a bank, the originator is obliged to pay its order. (b) 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 identified 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 record stating the information to

which the notice relates. 4. In a case governed by paragraph (a) of subsection 2, 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: (a) If the originator is obliged to pay its payment order as stated in subsection

3, the originator has the right to recover. (b) 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.