Tennessee Code Title 47. Commercial Instruments and Transactions § 47-4A-207

(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; and

(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.

(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 subdivision (b)(1);

The following rules apply:

(1) If the originator is obliged to pay its payment order as stated in subsection (c), the originator has the right to recover; and

(2) If the originator is not a bank and is not obliged to pay its payment order, the originator's bank has the right to recover.