(4A-207) Misdescription of beneficiary
N.D. Cent. Code § 41-04.1-15
in effect41-04.1-15. (4A-207) Misdescription of beneficiary
1. Subject to subsection 2, 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, 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 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 subdivision a
of subsection 2, the following rules apply:
a. If the originator is a bank, the originator is obliged to pay its order.
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 satisfied the burden of proof if it proves that the originator,
before the payment order was accepted, signed a record stating the information
to which the notice relates.
4. In a case governed by subdivision a of subsection 2, 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, 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.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t41c04-1.pdf#nameddest=41-04p1-15Fetched: 10/16/2026