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Can you summarize MNST 336.4A-208?
UNIFORM COMMERCIAL CODE > MISDESCRIPTION OF INTERMEDIARY BANK OR BENEFICIARY'S BANK.
Short Summary
This subsection of the Minnesota Statutes, specifically under the Trade Regulations and Consumer Protection section of the Uniform Commercial Code, governs payment orders that identify an intermediary bank or beneficiary’s bank. It outlines the obligations and rights of receiving banks and senders of payment orders in cases where the bank is identified only by an identifying number or both by name and an identifying number. The receiving bank may rely on the number or name as the proper identification of the bank, depending on certain conditions. The sender is obligated to compensate the receiving bank for any loss and expenses incurred due to reliance on the number. The subsection also addresses situations where the name and number identify different persons and the rights and obligations of the sender and receiving bank in such cases. Overall, this subsection provides guidelines for the proper identification and execution of payment orders involving intermediary banks or beneficiary’s banks.
Whom does it apply to?
Receiving banks and senders of payment orders
What does it govern?
Payment orders identifying an intermediary bank or beneficiary's bank
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
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.
Jurisdiction
Minnesota