§12A-4A-207.

§12A-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 paragraph (1) of subsection (b) 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 writing stating the information to which
   the notice relates.
   
   (d) In a case governed by paragraph (1) of subsection (b) 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.