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Can you summarize MNST 336.4A-207?
UNIFORM COMMERCIAL CODE > MISDESCRIPTION OF BENEFICIARY.
Short Summary
This legal document, part of the Minnesota Statutes under the Trade Regulations and Consumer Protection section, specifically falls under the Uniform Commercial Code. It governs the handling of payment orders and the identification of beneficiaries in such orders. According to the document, if the name, bank account number, or other identification of the beneficiary in a payment order refers to a nonexistent or unidentifiable person or account, no person has rights as a beneficiary and acceptance of the order cannot occur. However, if the payment order identifies the beneficiary by both name and an identifying or bank account number that refer to different persons, the beneficiary’s bank may rely on the number as the proper identification of the beneficiary, unless it knows that the name and number identify different persons. 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 a beneficiary except the person paid by the beneficiary’s bank if they were entitled to receive payment from the originator of the funds transfer. The document also outlines rules and obligations for the originator and their bank in cases where the payment order is accepted despite inconsistent identification of the beneficiary. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Beneficiaries, beneficiary's bank, originator, originator's bank
What does it govern?
Payment orders and the identification of beneficiaries
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota