State Codes and Statutes
Statutes > Utah > Title-70a > Chapter-04a > 70a-4a-21170A-4a-211. Cancellation and amendment of payment order.
(1) A communication of the sender of a payment order canceling or amending the ordermay be transmitted to the receiving bank orally, electronically, or in writing. If a securityprocedure is in effect between the sender and the receiving bank, the communication is noteffective to cancel or amend the order unless the communication is verified pursuant to thesecurity procedure or the bank agrees to the cancellation or amendment.
(2) Subject to Subsection (1), a communication by the sender canceling or amending apayment order is effective to cancel or amend the order if notice of the communication is receivedat a time and in a manner affording the receiving bank a reasonable opportunity to act on thecommunication before the bank accepts the payment order.
(3) After a payment order has been accepted, cancellation or amendment of the order isnot effective unless the receiving bank agrees or a funds transfer system rule allows cancellationor amendment without agreement of the bank:
(a) With respect to a payment order accepted by a receiving bank other than thebeneficiary'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.
(b) With respect to a payment order accepted by the beneficiary's bank, cancellation oramendment is not effective unless the order was issued in execution of an unauthorized paymentorder, or because of a mistake by a sender in the funds transfer which resulted in the issuance of apayment order:
(i) that is a duplicate of a payment order previously issued by the sender;
(ii) that orders payment to a beneficiary not entitled to receive payment from theoriginator; or
(iii) that orders payment in an amount greater than the amount the beneficiary wasentitled to receive from the originator. If the payment order is canceled or amended, thebeneficiary's bank is entitled to recover from the beneficiary any amount paid to the beneficiary tothe extent allowed by the law governing mistake and restitution.
(4) An unaccepted payment order is canceled by operation of law at the close of the fifthfunds transfer business day of the receiving bank after the execution date or payment date of theorder.
(5) A canceled payment order cannot be accepted. If an accepted payment order iscanceled, the acceptance is nullified and no person has any right or obligation based on theacceptance. Amendment of a payment order is deemed to be cancellation of the original order atthe time of amendment and issue of a new payment order in the amended form at the same time.
(6) Unless otherwise provided in an agreement of the parties or in a funds transfer systemrule, if the receiving bank, after accepting a payment order, agrees to cancellation or amendmentof the order by the sender or is bound by a funds transfer system rule allowing cancellation oramendment without the bank's agreement, the sender, whether or not cancellation or amendmentis effective, is liable to the bank for any loss and expenses, including reasonable attorneys' fees,incurred by the bank as a result of the cancellation or amendment or attempted cancellation oramendment.
(7) A payment order is not revoked by death or legal incapacity of the sender unless thereceiving bank knows of the death or of an adjudication of incapacity by a court of competentjurisdiction and has reasonable opportunity to act before acceptance of the order.
(8) A funds transfer system rule is not effective to the extent it conflicts with Subsection
(3)(b).
Amended by Chapter 237, 1993 General Session
