C.R.S. Section 4-4.5-208
Misdescription of intermediary bank or beneficiary’s bank


(a)

This subsection (a) applies to a payment order identifying an intermediary bank or the beneficiary’s bank only by an identifying number.

(1)

The receiving bank may rely on the number as the proper identification of the intermediary or beneficiary’s bank and need not determine whether the number identifies a bank.

(2)

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.

(b)

This subsection (b) applies to a payment order identifying an intermediary bank or the beneficiary’s bank both by name and an identifying number if the name and number identify different persons.

(1)

If the sender is a bank, the receiving bank may rely on the number as the proper identification of the intermediary or beneficiary’s bank if the receiving bank, when it executes the sender’s order, does not know that the name and number identify different persons. The receiving bank need not determine whether the name and number refer to the same person or whether the number refers to a bank. 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.

(2)

If the sender is not a bank and the receiving bank proves that the sender, before the payment order was accepted, had notice that the receiving bank might rely on the number as the proper identification of the intermediary or beneficiary’s bank even if it identifies a person different from the bank identified by name, the rights and obligations of the sender and the receiving bank are governed by subsection (b)(1) of this section, as though the sender were a bank. Proof of notice may be made by any admissible evidence. The receiving bank satisfies the burden of proof if it proves that the sender, before the payment order was accepted, signed a record stating the information to which the notice relates.

(3)

Regardless of whether the sender is a bank, the receiving bank may rely on the name as the proper identification of the intermediary or beneficiary’s bank if the receiving bank, at the time it executes the sender’s order, does not know that the name and number identify different persons. The receiving bank need not determine whether the name and number refer to the same person.

(4)

If the receiving bank knows that the name and number identify different persons, reliance on either the name or the number in executing the sender’s payment order is a breach of the obligation stated in section 4-4.5-302 (a)(1).

Source: Section 4-4.5-208 — Misdescription of intermediary bank or beneficiary’s bank, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-04.­pdf (accessed Oct. 20, 2023).

4–4.5–101
Short title
4–4.5–102
Subject matter
4–4.5–103
Payment order - definitions
4–4.5–104
Funds transfer - definitions
4–4.5–105
Other definitions
4–4.5–106
Time payment order is received
4–4.5–107
Federal reserve regulations and operating circulars
4–4.5–108
Relationship to federal “Electronic Fund Transfer Act of 1978”
4–4.5–201
Security procedure
4–4.5–202
Authorized and verified payment orders
4–4.5–203
Unenforceability of certain verified payment orders
4–4.5–204
Refund of payment and duty of customer to report with respect to unauthorized payment order
4–4.5–205
Erroneous payment orders
4–4.5–206
Transmission of payment order through funds-transfer or other communication system
4–4.5–207
Misdescription of beneficiary
4–4.5–208
Misdescription of intermediary bank or beneficiary’s bank
4–4.5–209
Acceptance of payment order
4–4.5–210
Rejection of payment order
4–4.5–211
Cancellation and amendment of payment order
4–4.5–212
Liability and duty of receiving bank regarding unaccepted payment order
4–4.5–301
Execution and execution date
4–4.5–302
Obligations of receiving bank in execution of payment order
4–4.5–303
Erroneous execution of payment order
4–4.5–304
Duty of sender to report erroneously executed payment order
4–4.5–305
Liability for late or improper execution or failure to execute payment order
4–4.5–401
Payment date
4–4.5–402
Obligation of sender to pay receiving bank
4–4.5–403
Payment by sender to receiving bank
4–4.5–404
Obligation of beneficiary’s bank to pay and give notice to beneficiary
4–4.5–405
Payment by beneficiary’s bank to beneficiary
4–4.5–406
Payment by originator to beneficiary
4–4.5–501
Variation by agreement and effect of funds-transfer system rule
4–4.5–502
Creditor process served on receiving bank
4–4.5–503
Injunction or restraining order with respect to funds transfer
4–4.5–504
Order in which items and payment orders may be charged to account
4–4.5–505
Preclusions of objection to debit of customer’s account
4–4.5–506
Rate of interest
4–4.5–507
Choice of law
Green check means up to date. Up to date

Current through Fall 2024

§ 4-4.5-208’s source at colorado​.gov