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Can you summarize NVRS 104A.4208?
Uniform Commercial CodeAdditional Articles > Misdescription of intermediary bank or beneficiarys bank.
Short Summary
This provision, part of the Nevada Revised Statutes under the Uniform Commercial CodeAdditional Articles, governs the identification of intermediary banks or beneficiary’s banks in payment orders. It establishes rules for receiving banks when a payment order only identifies the bank by an identifying number. The receiving bank can rely on the number as the proper identification and is not required to determine if it refers to a bank. The sender is obligated to compensate the receiving bank for any loss or expenses incurred due to reliance on the number. If the payment order identifies both the bank by name and an identifying number, but they refer to different persons, the receiving bank can rely on the number if it is unaware of the discrepancy. Non-bank senders can be held to the same obligations if they had notice of the bank’s reliance on the number. The receiving bank can also rely on the name unless it knows that the name and number identify different persons. However, if the receiving bank is aware of the discrepancy, relying on either the name or the number would be a breach of obligations. This provision was added to the Nevada Revised Statutes in 1991.
Whom does it apply to?
Receiving banks, sending banks, and non-bank senders
What does it govern?
Identification of intermediary bank or beneficiary's bank in payment orders
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Nevada