                                 CODE OF VIRGINIA

MISDESCRIPTION OF INTERMEDIARY BANK OR BENEFICIARY&#8217;S BANK (§ 8.4A-208)

a. This subsection applies to a payment order identifying an intermediary bank
or the beneficiary&#8217;s bank only by an identifying number.

   1. The receiving bank may rely on the number as the proper identification of
   the intermediary or beneficiary&#8217;s bank and need not determine whether
   the number identifies a bank.

   2. 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.

b. This subsection applies to a payment order identifying an intermediary bank
or the beneficiary&#8217;s bank both by name and an identifying number if the
name and number identify different persons.

   1. If the sender is a bank, the receiving bank may rely on the number as the
   proper identification of the intermediary or beneficiary&#8217;s bank if the
   receiving bank, when it executes the sender&#8217;s order, does not know that
   the name and number identify different persons. The receiving bank need not
   determine whether the name and number refer to the same person or whether the
   number refers to a bank. 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. 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&#8217;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 subdivision (b) (1) of this section, as though
   the sender were a bank. Proof of notice may be made by any admissible
   evidence. 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.

   3. 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&#8217;s bank if the receiving bank, at the time it executes the
   sender&#8217;s order, does not know that the name and number identify
   different persons. The receiving bank need not determine whether the name and
   number refer to the same person.

   4. 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&#8217;s payment order is a breach of the obligation stated in
   subdivision (a) (1) of &#xA7; 8.4A-302.

HISTORY: 1990, c. 9; 2024, c. 652.