Vermont § 207 - § 4A—207.

§ 207. § 4A—207.

• Misdescription of beneficiary (a) Subject to subsection (b) of this section, 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. (b) 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: (1) Except as otherwise provided in subsection (c) of this section, 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. (2) 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. (c) If (i) a payment order described in subsection (b) of this section is accepted, (ii)
  the originator’s payment order described the beneficiary inconsistently by name and
  number, and (iii) the beneficiary’s bank pays the person identified by number as permitted
  by subdivision (b)(1) of this section, the following rules apply: (1) If the originator is a bank, the originator is obliged to pay its order. (2) 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 identifies 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. (d) In a case governed by subdivision (b)(1) of this section, 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: (1) If the originator is obliged to pay its payment order as stated in subsection (c)
  of this section, the originator has the right to recover. (2) 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. (Added 1993, No. 158 (Adj. Sess.), § 14, eff. Jan. 1, 1995; amended 2025, No. 17, § 5, eff. July 1, 2025.)