TriColor instructed Great State Bank to wire $3,578,900 to Betovon,Inc.Great State Bank issued the payment order to Vetobon,Inc.,instead of Betovon.Great State Bank is liable to TriColor for the full amount.

Question

Quizplus · Accepted Answer

Great State Bank was instructed to wire the funds to Betovon,Inc. However, they issued the payment order to Vetobon,Inc. This means that they did not follow the instructions given by TriColor, the payer. As a result, Great State Bank is liable to TriColor for the full amount.

TriColor Instructed Great State Bank to Wire $3,578,900 to Betovon,Inc