HB 593 — Misdescription of Beneficiaries and Banks

F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB593CS/HB593 2024 A bill to be entitled An act relating to misdescription of beneficiaries and banks;

hb0593-00hb0593-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB593CS/HB593 2024 by an identifying or bank account number.

hb0593-00hb0593-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB593CS/HB593 2024 accepted, the originator's payment order described the beneficiary inconsistently by name and number, and the beneficiary's bank pays any person who the originator did not intend to pay, then the originator is not obliged to pay its order,order unless the originatorperson wasidentified grosslyby negligentnumber inas sendingpermitted theby originalparagraph instructions,(2)(a), and the beneficiary'sfollowing bankrules wasapply: diligent in ascertaining whether the number and name referred to the same person.

the person identified by number as permitted by paragraph (2)(a), the following rules apply:

(4) In a case governed by paragraph (2)(a), If the beneficiary's bank improperly rightfully pays any the person identified by number and that person was not entitled or intended to receive payment from the originator, the amount paid Page 3of 6 CODING:

hb0593-00hb0593-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB593CS/HB593 2024 beneficiary's bank improperly rightfully pays any the person identified by number and that person was not entitled or intended 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.

(a) If the originator is obliged to pay its payment order due to gross negligence as stated in subsection (3), the originator has the right to recover.

Otherwise, the bank who has borne the loss of the order has the right to recover.

670.208 Misdescription of intermediary bank or beneficiary's bank.— (1) This subsection applies to a Any payment order Pageidentifying 4ofan 6intermediary CODING:bank or the beneficiary's bank must use both only by an identifying number and a name.

(a) The receiving bank must may rely on the number as the proper identification of the intermediary or beneficiary's bank Page 4of 6 CODING:

hb0593-00hb0593-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB593CS/HB593 2024 identifyingand anneed intermediarynot bankdetermine orwhether the beneficiary'snumber bankidentifies musta usebank bothand onlywhether bythe anbank identifyingidentified by number andmatches athe name.name provided.

(a) The receiving bank must 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 and whether the bank identified by number matches the name provided.

(b) 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 Page 5of 6 CODING:

hb0593-00hb0593-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB593CS/HB593 2024 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 paragraph (a), as though the sender were a bank.

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