Also known as: identifying numbers · identification number · ID number
Written by attorneys · grounded in primary & secondary sources — see below
A designation consisting of numerals or alphanumeric characters used to specify a particular person, account, or instrument. The designation determines the person entitled to payment on a negotiable instrument when the instrument names an account or payee by number alone or alongside a name.
Isaac Irving writes a check drawn on his account at First Bank and makes it payable to account number 789456 at Second Bank. When the check reaches Second Bank, the bank treats the instrument as payable to the customer whose account bears that number even though no name appears on the check. The customer holding account 789456 therefore qualifies as the holder entitled to enforce the instrument.
Bally’s Park Place deposits a check drawn on insufficient funds into its account at First National Bank of South Jersey. The check bears only an account number rather than the payee’s name. First National encodes the number incorrectly, causing the check to be routed to Bank Leumi. Bank Leumi relies on the number to identify the intended account and processes the item. The court holds that the identifying number controls the identity of the payee for purposes of determining proper routing and liability.
Select any source to read its text and confirm it supports the definition.
Under UCC § 3-110(c), if the name and number identify different persons, the instrument is payable to the person identified by name if the taker knows the discrepancy. Otherwise the number controls.
Supporting sources
No. An instrument payable only to an identifying number remains order paper payable to the person to whom the account or office identified by the number belongs.
Supporting sources
A receiving bank may rely on the number as proper identification of an intermediary or beneficiary’s bank and need not verify that the number matches the name. The sender must compensate the bank for any loss caused by that reliance.
Supporting sources
…been extended from its original length to accommodate a double sleeper and it had also been wrecked at one time. The vehicle identification number (VIN) listed on the Minnesota title was 60596P. Decker transferred the truck’s title to South Dakota. Although he claims not to have made any major structural changes, on several occasions…