§25‑4A‑211. Cancellation and amendment of payment order.
(a) A communication ofthe sender of a payment order cancelling or amending the order may betransmitted to the receiving bank orally, electronically, or in writing. If asecurity procedure is in effect between the sender and the receiving bank, thecommunication is not effective to cancel or amend the order unless thecommunication is verified pursuant to the security procedure or the bank agreesto the cancellation or amendment.
(b) Subject to subsection(a), a communication by the sender cancelling or amending a payment order iseffective to cancel or amend the order if notice of the communication isreceived at a time and in a manner affording the receiving bank a reasonableopportunity to act on the communication before the bank accepts the paymentorder.
(c) After a paymentorder has been accepted, cancellation or amendment of the order is noteffective unless the receiving bank agrees or a funds‑transfer systemrule allows cancellation or amendment without agreement of the bank.
(1) With respect to apayment order accepted by a receiving bank other than the beneficiary's bank,cancellation or amendment is not effective unless a conforming cancellation oramendment of the payment order issued by the receiving bank is also made.
(2) With respect to apayment order accepted by the beneficiary's bank, cancellation or amendment isnot effective unless the order was issued in execution of an unauthorizedpayment order, or because of a mistake by a sender in the funds transfer whichresulted in the issuance of a payment order (i) that is a duplicate of apayment order previously issued by the sender, (ii) that orders payment to abeneficiary not entitled to receive payment from the originator, or (iii) thatorders payment in an amount greater than the amount the beneficiary wasentitled to receive from the originator. If the payment order is cancelled oramended, the beneficiary's bank is entitled to recover from the beneficiary anyamount paid to the beneficiary to the extent allowed by the law governingmistake and restitution.
(d) An unacceptedpayment order is cancelled by operation of law at the close of the fifth funds‑transferbusiness day of the receiving bank after the execution date or payment date ofthe order.
(e) A cancelled paymentorder cannot be accepted. If an accepted payment order is cancelled, theacceptance is nullified and no person has any right or obligation based on theacceptance. Amendment of a payment order is deemed to be cancellation of theoriginal order at the time of amendment and issue of a new payment order in theamended form at the same time.
(f) Unless otherwiseprovided in an agreement of the parties or in a funds‑transfer systemrule, if the receiving bank, after accepting a payment order, agrees tocancellation or amendment of the order by the sender or is bound by a funds‑transfersystem rule allowing cancellation or amendment without the bank's agreement,the sender, whether or not cancellation or amendment is effective, is liable tothe bank for any loss and expenses, including reasonable attorneys' fees,incurred by the bank as a result of the cancellation or amendment or attemptedcancellation or amendment.
(g) A payment order isnot revoked by the death or legal incapacity of the sender unless the receivingbank knows of the death or of an adjudication of incapacity by a court ofcompetent jurisdiction and has reasonable opportunity to act before acceptanceof the order.
(h) A funds‑transfersystem rule is not effective to the extent it conflicts with subsection (c)(2).(1993, c. 157, s. 1.)
§25‑4A‑211. Cancellation and amendment of payment order.
(a) A communication ofthe sender of a payment order cancelling or amending the order may betransmitted to the receiving bank orally, electronically, or in writing. If asecurity procedure is in effect between the sender and the receiving bank, thecommunication is not effective to cancel or amend the order unless thecommunication is verified pursuant to the security procedure or the bank agreesto the cancellation or amendment.
(b) Subject to subsection(a), a communication by the sender cancelling or amending a payment order iseffective to cancel or amend the order if notice of the communication isreceived at a time and in a manner affording the receiving bank a reasonableopportunity to act on the communication before the bank accepts the paymentorder.
(c) After a paymentorder has been accepted, cancellation or amendment of the order is noteffective unless the receiving bank agrees or a funds‑transfer systemrule allows cancellation or amendment without agreement of the bank.
(1) With respect to apayment order accepted by a receiving bank other than the beneficiary's bank,cancellation or amendment is not effective unless a conforming cancellation oramendment of the payment order issued by the receiving bank is also made.
(2) With respect to apayment order accepted by the beneficiary's bank, cancellation or amendment isnot effective unless the order was issued in execution of an unauthorizedpayment order, or because of a mistake by a sender in the funds transfer whichresulted in the issuance of a payment order (i) that is a duplicate of apayment order previously issued by the sender, (ii) that orders payment to abeneficiary not entitled to receive payment from the originator, or (iii) thatorders payment in an amount greater than the amount the beneficiary wasentitled to receive from the originator. If the payment order is cancelled oramended, the beneficiary's bank is entitled to recover from the beneficiary anyamount paid to the beneficiary to the extent allowed by the law governingmistake and restitution.
(d) An unacceptedpayment order is cancelled by operation of law at the close of the fifth funds‑transferbusiness day of the receiving bank after the execution date or payment date ofthe order.
(e) A cancelled paymentorder cannot be accepted. If an accepted payment order is cancelled, theacceptance is nullified and no person has any right or obligation based on theacceptance. Amendment of a payment order is deemed to be cancellation of theoriginal order at the time of amendment and issue of a new payment order in theamended form at the same time.
(f) Unless otherwiseprovided in an agreement of the parties or in a funds‑transfer systemrule, if the receiving bank, after accepting a payment order, agrees tocancellation or amendment of the order by the sender or is bound by a funds‑transfersystem rule allowing cancellation or amendment without the bank's agreement,the sender, whether or not cancellation or amendment is effective, is liable tothe bank for any loss and expenses, including reasonable attorneys' fees,incurred by the bank as a result of the cancellation or amendment or attemptedcancellation or amendment.
(g) A payment order isnot revoked by the death or legal incapacity of the sender unless the receivingbank knows of the death or of an adjudication of incapacity by a court ofcompetent jurisdiction and has reasonable opportunity to act before acceptanceof the order.
(h) A funds‑transfersystem rule is not effective to the extent it conflicts with subsection (c)(2).(1993, c. 157, s. 1.)
§25‑4A‑211. Cancellation and amendment of payment order.
(a) A communication ofthe sender of a payment order cancelling or amending the order may betransmitted to the receiving bank orally, electronically, or in writing. If asecurity procedure is in effect between the sender and the receiving bank, thecommunication is not effective to cancel or amend the order unless thecommunication is verified pursuant to the security procedure or the bank agreesto the cancellation or amendment.
(b) Subject to subsection(a), a communication by the sender cancelling or amending a payment order iseffective to cancel or amend the order if notice of the communication isreceived at a time and in a manner affording the receiving bank a reasonableopportunity to act on the communication before the bank accepts the paymentorder.
(c) After a paymentorder has been accepted, cancellation or amendment of the order is noteffective unless the receiving bank agrees or a funds‑transfer systemrule allows cancellation or amendment without agreement of the bank.
(1) With respect to apayment order accepted by a receiving bank other than the beneficiary's bank,cancellation or amendment is not effective unless a conforming cancellation oramendment of the payment order issued by the receiving bank is also made.
(2) With respect to apayment order accepted by the beneficiary's bank, cancellation or amendment isnot effective unless the order was issued in execution of an unauthorizedpayment order, or because of a mistake by a sender in the funds transfer whichresulted in the issuance of a payment order (i) that is a duplicate of apayment order previously issued by the sender, (ii) that orders payment to abeneficiary not entitled to receive payment from the originator, or (iii) thatorders payment in an amount greater than the amount the beneficiary wasentitled to receive from the originator. If the payment order is cancelled oramended, the beneficiary's bank is entitled to recover from the beneficiary anyamount paid to the beneficiary to the extent allowed by the law governingmistake and restitution.
(d) An unacceptedpayment order is cancelled by operation of law at the close of the fifth funds‑transferbusiness day of the receiving bank after the execution date or payment date ofthe order.
(e) A cancelled paymentorder cannot be accepted. If an accepted payment order is cancelled, theacceptance is nullified and no person has any right or obligation based on theacceptance. Amendment of a payment order is deemed to be cancellation of theoriginal order at the time of amendment and issue of a new payment order in theamended form at the same time.
(f) Unless otherwiseprovided in an agreement of the parties or in a funds‑transfer systemrule, if the receiving bank, after accepting a payment order, agrees tocancellation or amendment of the order by the sender or is bound by a funds‑transfersystem rule allowing cancellation or amendment without the bank's agreement,the sender, whether or not cancellation or amendment is effective, is liable tothe bank for any loss and expenses, including reasonable attorneys' fees,incurred by the bank as a result of the cancellation or amendment or attemptedcancellation or amendment.
(g) A payment order isnot revoked by the death or legal incapacity of the sender unless the receivingbank knows of the death or of an adjudication of incapacity by a court ofcompetent jurisdiction and has reasonable opportunity to act before acceptanceof the order.
(h) A funds‑transfersystem rule is not effective to the extent it conflicts with subsection (c)(2).(1993, c. 157, s. 1.)
