ORS 74A.2070
Misdescription of beneficiary


(1)

Subject to subsection (2) of this section, if, in a payment order received by the beneficiary’s bank, the name, bank account number, or other identification of the beneficiary refers to a nonexistent or unidentifiable person or account, no person has rights as a beneficiary of the order and acceptance of the order cannot occur.

(2)

If a payment order received by the beneficiary’s bank identifies the beneficiary both by name and by an identifying or bank account number and the name and number identify different persons, the following rules apply:

(a)

Except as otherwise provided in subsection (3) of this section, if the beneficiary’s bank does not know that the name and number refer to different persons, it may rely on the number as the proper identification of the beneficiary of the order. The beneficiary’s bank need not determine whether the name and number refer to the same person.

(b)

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 beneficiary except the person paid by the beneficiary’s bank if that person was entitled to receive payment from the originator of the funds transfer. If no person has rights as beneficiary, acceptance of the order cannot occur.

(3)

If a payment order described in subsection (2) of this section is accepted, the originator’s payment order described the beneficiary inconsistently by name and number and the beneficiary’s bank pays the person identified by number as permitted by subsection (2)(a) of this section, the following rules apply:

(a)

If the originator is a bank, the originator is obliged to pay its order; and

(b)

If the originator is not a bank and proves that the person identified by number was not entitled to receive payment from the originator, the originator is not obliged to pay its order unless the originator’s bank proves that the originator, before acceptance of the originator’s order, had notice that payment of a payment order issued by the originator might be made by the beneficiary’s bank on the basis of an identifying or bank account number even if it identifies a person different from the named beneficiary. Proof of notice may be made by any admissible evidence. The originator’s bank satisfies the burden of proof if it proves that the originator, before the payment order was accepted, signed a writing stating the information to which the notice relates.

(4)

In a case governed by subsection (2)(a) of this section, if the beneficiary’s bank rightfully pays the person identified by number and that person was not entitled to receive payment from the originator, the amount paid may be recovered from that person to the extent allowed by the law governing mistake and restitution as follows:

(a)

If the originator is obliged to pay its payment order as stated in subsection (3) of this section, the originator has the right to recover.

(b)

If the originator is not a bank and is not obliged to pay its payment order, the originator’s bank has the right to recover. [1991 c.442 §15]

Source: Section 74A.2070 — Misdescription of beneficiary, https://www.­oregonlegislature.­gov/bills_laws/ors/ors74A.­html.

74A.1010
Short title
74A.1020
Subject matter
74A.1030
Payment order
74A.1040
Funds transfer
74A.1050
Other definitions
74A.1060
Time payment order is received
74A.1070
Federal Reserve regulations and operating circulars
74A.1080
Exclusion of consumer transactions covered by federal law
74A.2010
Security procedure
74A.2020
Authorized and verified payment orders
74A.2030
Unenforceability of certain verified payment orders
74A.2040
Refund of payment and duty of customer to report with respect to unauthorized payment order
74A.2050
Erroneous payment orders
74A.2060
Transmission of payment order through funds transfer or other communication system
74A.2070
Misdescription of beneficiary
74A.2080
Misdescription of intermediary bank or beneficiary’s bank
74A.2090
Acceptance of payment order
74A.2100
Rejection of payment order
74A.2110
Cancellation and amendment of payment order
74A.2120
Liability and duty of receiving bank regarding unaccepted payment order
74A.3010
Execution and execution date
74A.3020
Obligations of receiving bank in execution of payment order
74A.3030
Erroneous execution of payment order
74A.3040
Duty of sender to report erroneously executed payment order
74A.3050
Liability for late or improper execution or failure to execute payment order
74A.4010
Payment date
74A.4020
Obligation of sender to pay receiving bank
74A.4030
Payment by sender to receiving bank
74A.4040
Obligation of beneficiary’s bank to pay and give notice to beneficiary
74A.4050
Payment by beneficiary’s bank to beneficiary
74A.4060
Payment by originator to beneficiary
74A.5010
Variation by agreement and effect of funds-transfer system rule
74A.5020
Creditor process served on receiving bank
74A.5030
Injunction or restraining order with respect to funds transfer
74A.5040
Order in which items and payment orders may be charged to account
74A.5050
Preclusion of objection to debit of customer’s account
74A.5060
Rate of interest
74A.5070
Choice of law
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