§ 336.4A-206 — Transmission of Payment Order Through Funds-transfer or Other Communication System
Plain-Language Summary
If a payment order identifies an intermediary bank by both name and number and they do not match, the receiving bank can rely on the number. Resulting losses fall on the sender.
336.4A-206 TRANSMISSION OF PAYMENT ORDER THROUGH FUNDS-TRANSFER OR OTHER COMMUNICATION SYSTEM.
(a) If a payment order addressed to a receiving bank is transmitted to a funds-transfer system or other third-party communication system for transmittal to the bank, the system is deemed to be an agent of the sender for the purpose of transmitting the payment order to the bank. If there is a discrepancy between the terms of the payment order transmitted to the system and the terms of the payment order transmitted by the system to the bank, the terms of the payment order of the sender are those transmitted by the system. This section does not apply to a funds-transfer system of the Federal Reserve Banks.
(b) This section applies to cancellations and amendments of payment orders to the same extent it applies to payment orders.
History:
History: History:
1990 c 582 art 1 s 14