810 ILCS 5/4A-207
2021 Illinois Compiled Statutes|Chapter 810 - COMMERCIAL CODE|810 ILCS 5/ - Uniform Commercial Code.|Article 4A - Funds Transfers

 (from Ch. 26, par. 4A-207)Sec. 4A-207.     Misdescription of beneficiary.(a) Subject to subsection (b), 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.(b) 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:(1) Except as otherwise provided in subsection (c),     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.(2) 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.(c) If (i) a payment order described in subsection (b) is accepted, (ii)  the originator's payment order described the beneficiary inconsistently by  name and number, and (iii) the beneficiary's bank pays the person  identified by number as permitted by subsection (b)(1), the following  rules apply:(1) If the originator is a bank, the originator is     obligated to pay its order.(2) 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 event 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 as proof if it proves that the originator, before the payment order was accepted, signed a writing stating the information to which the notice relates.(d) In a case governed by subsection (b)(1), 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:(1) If the originator is obligated to pay its payment     order as stated in subsection (c), the originator has the right to recover.(2) If the originator is not a bank and is not     obligated to pay its payment order, the originator's bank has the right to recover.   (Source: P.A. 86-1291.)