Absent Actual Knowledge Of An Inconsistency, Banks May Rely On Account Number Specified On An Incoming Wire Transfer
Question: If wire transfer instructions designate a valid account number, but an incorrect beneficiary, may the bank that accepts the incoming wire rely upon the account number?
Answer: Yes, assuming the bank did not have actual knowledge of that inconsistency. So said the court of appeal in Los Angeles in TME Enterprises, Inc. v. Norwest Corporation, 04 C.D.O.S. 10834 (December 9, 2004).
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