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Can you summarize NHRS 382-A:4A-208?
UNIFORM COMMERCIAL CODE > Misdescription of Intermediary Bank or Beneficiary's Bank.
Short Summary
This subsection of the New Hampshire Revised Statutes, specifically the Uniform Commercial Code (Chapter 382-A), governs payment orders and the identification of intermediary banks or beneficiary’s banks. It outlines the rules and obligations for receiving banks, sending banks, and non-bank senders in cases where the intermediary bank or beneficiary’s bank is identified only by an identifying number or both by name and an identifying number. The receiving bank may rely on the number as the proper identification of the bank and is not required to determine whether the number identifies a bank. However, if the name and number identify different persons, the sender is obliged to compensate the receiving bank for any loss and expenses incurred. The document also specifies the rights and obligations of banks and non-bank senders in such cases, including the burden of proof for notice and the breach of obligations if the receiving bank knows that the name and number identify different persons. Overall, this subsection provides clarity and guidelines for the proper identification of intermediary banks or beneficiary’s banks in payment orders.
Whom does it apply to?
Receiving banks, sending banks, and non-bank senders
What does it govern?
Payment orders and the identification of intermediary banks or beneficiary's banks
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
New Hampshire