§ 8.4A-211. Cancellation and amendment of payment order.
(a) A communication of the sender of a payment order cancelling or amendingthe order may be transmitted to the receiving bank orally, electronically, orin writing. If a security procedure is in effect between the sender and thereceiving bank, the communication is not effective to cancel or amend theorder unless the communication is verified pursuant to the security procedureor the bank agrees to the cancellation or amendment.
(b) Subject to subsection (a) of this section, a communication by the sendercancelling or amending a payment order is effective to cancel or amend theorder if notice of the communication is received at a time and in a manneraffording the receiving bank a reasonable opportunity to act on thecommunication before the bank accepts the payment order.
(c) After a payment order has been accepted, cancellation or amendment of theorder is not effective unless the receiving bank agrees or a funds-transfersystem rule allows cancellation or amendment without agreement of the bank.
(1) With respect to a payment order accepted by a receiving bank other thanthe beneficiary's bank, cancellation or amendment is not effective unless aconforming cancellation or amendment of the payment order issued by thereceiving bank is also made.
(2) With respect to a payment order accepted by the beneficiary's bank,cancellation or amendment is not effective unless the order was issued inexecution of an unauthorized payment order, or because of a mistake by asender in the funds transfer which resulted in the issuance of a paymentorder (i) that is a duplicate of a payment order previously issued by thesender, (ii) that orders payment to a beneficiary not entitled to receivepayment from the originator, or (iii) that orders payment in an amountgreater than the amount the beneficiary was entitled to receive from theoriginator. If the payment order is canceled or amended, the beneficiary'sbank is entitled to recover from the beneficiary any amount paid to thebeneficiary to the extent allowed by the law governing mistake andrestitution.
(d) An unaccepted payment order is canceled by operation of law at the closeof the fifth funds-transfer business day of the receiving bank after theexecution date or payment date of the order.
(e) A canceled payment order cannot be accepted. If an accepted paymentorder is canceled, the acceptance is nullified and no person has any right orobligation based on the acceptance. Amendment of a payment order is deemed tobe cancellation of the original order at the time of amendment and issue of anew payment order in the amended form at the same time.
(f) Unless otherwise provided in an agreement of the parties or in afunds-transfer system rule, if the receiving bank, after accepting a paymentorder, agrees to cancellation or amendment of the order by the sender or isbound by a funds-transfer system rule allowing cancellation or amendmentwithout the bank's agreement, the sender, whether or not cancellation oramendment is effective, is liable to the bank for any loss and expenses,including reasonable attorney's fees, incurred by the bank as a result of thecancellation or amendment or attempted cancellation or amendment.
(g) A payment order is not revoked by the death or legal incapacity of thesender unless the receiving bank knows of the death or of an adjudication ofincapacity by a court of competent jurisdiction and has reasonableopportunity to act before acceptance of the order.
(h) A funds-transfer system rule is not effective to the extent it conflictswith subdivision (c) (2) of this section.
§ 8.4A-211. Cancellation and amendment of payment order.
(a) A communication of the sender of a payment order cancelling or amendingthe order may be transmitted to the receiving bank orally, electronically, orin writing. If a security procedure is in effect between the sender and thereceiving bank, the communication is not effective to cancel or amend theorder unless the communication is verified pursuant to the security procedureor the bank agrees to the cancellation or amendment.
(b) Subject to subsection (a) of this section, a communication by the sendercancelling or amending a payment order is effective to cancel or amend theorder if notice of the communication is received at a time and in a manneraffording the receiving bank a reasonable opportunity to act on thecommunication before the bank accepts the payment order.
(c) After a payment order has been accepted, cancellation or amendment of theorder is not effective unless the receiving bank agrees or a funds-transfersystem rule allows cancellation or amendment without agreement of the bank.
(1) With respect to a payment order accepted by a receiving bank other thanthe beneficiary's bank, cancellation or amendment is not effective unless aconforming cancellation or amendment of the payment order issued by thereceiving bank is also made.
(2) With respect to a payment order accepted by the beneficiary's bank,cancellation or amendment is not effective unless the order was issued inexecution of an unauthorized payment order, or because of a mistake by asender in the funds transfer which resulted in the issuance of a paymentorder (i) that is a duplicate of a payment order previously issued by thesender, (ii) that orders payment to a beneficiary not entitled to receivepayment from the originator, or (iii) that orders payment in an amountgreater than the amount the beneficiary was entitled to receive from theoriginator. If the payment order is canceled or amended, the beneficiary'sbank is entitled to recover from the beneficiary any amount paid to thebeneficiary to the extent allowed by the law governing mistake andrestitution.
(d) An unaccepted payment order is canceled by operation of law at the closeof the fifth funds-transfer business day of the receiving bank after theexecution date or payment date of the order.
(e) A canceled payment order cannot be accepted. If an accepted paymentorder is canceled, the acceptance is nullified and no person has any right orobligation based on the acceptance. Amendment of a payment order is deemed tobe cancellation of the original order at the time of amendment and issue of anew payment order in the amended form at the same time.
(f) Unless otherwise provided in an agreement of the parties or in afunds-transfer system rule, if the receiving bank, after accepting a paymentorder, agrees to cancellation or amendment of the order by the sender or isbound by a funds-transfer system rule allowing cancellation or amendmentwithout the bank's agreement, the sender, whether or not cancellation oramendment is effective, is liable to the bank for any loss and expenses,including reasonable attorney's fees, incurred by the bank as a result of thecancellation or amendment or attempted cancellation or amendment.
(g) A payment order is not revoked by the death or legal incapacity of thesender unless the receiving bank knows of the death or of an adjudication ofincapacity by a court of competent jurisdiction and has reasonableopportunity to act before acceptance of the order.
(h) A funds-transfer system rule is not effective to the extent it conflictswith subdivision (c) (2) of this section.
§ 8.4A-211. Cancellation and amendment of payment order.
(a) A communication of the sender of a payment order cancelling or amendingthe order may be transmitted to the receiving bank orally, electronically, orin writing. If a security procedure is in effect between the sender and thereceiving bank, the communication is not effective to cancel or amend theorder unless the communication is verified pursuant to the security procedureor the bank agrees to the cancellation or amendment.
(b) Subject to subsection (a) of this section, a communication by the sendercancelling or amending a payment order is effective to cancel or amend theorder if notice of the communication is received at a time and in a manneraffording the receiving bank a reasonable opportunity to act on thecommunication before the bank accepts the payment order.
(c) After a payment order has been accepted, cancellation or amendment of theorder is not effective unless the receiving bank agrees or a funds-transfersystem rule allows cancellation or amendment without agreement of the bank.
(1) With respect to a payment order accepted by a receiving bank other thanthe beneficiary's bank, cancellation or amendment is not effective unless aconforming cancellation or amendment of the payment order issued by thereceiving bank is also made.
(2) With respect to a payment order accepted by the beneficiary's bank,cancellation or amendment is not effective unless the order was issued inexecution of an unauthorized payment order, or because of a mistake by asender in the funds transfer which resulted in the issuance of a paymentorder (i) that is a duplicate of a payment order previously issued by thesender, (ii) that orders payment to a beneficiary not entitled to receivepayment from the originator, or (iii) that orders payment in an amountgreater than the amount the beneficiary was entitled to receive from theoriginator. If the payment order is canceled or amended, the beneficiary'sbank is entitled to recover from the beneficiary any amount paid to thebeneficiary to the extent allowed by the law governing mistake andrestitution.
(d) An unaccepted payment order is canceled by operation of law at the closeof the fifth funds-transfer business day of the receiving bank after theexecution date or payment date of the order.
(e) A canceled payment order cannot be accepted. If an accepted paymentorder is canceled, the acceptance is nullified and no person has any right orobligation based on the acceptance. Amendment of a payment order is deemed tobe cancellation of the original order at the time of amendment and issue of anew payment order in the amended form at the same time.
(f) Unless otherwise provided in an agreement of the parties or in afunds-transfer system rule, if the receiving bank, after accepting a paymentorder, agrees to cancellation or amendment of the order by the sender or isbound by a funds-transfer system rule allowing cancellation or amendmentwithout the bank's agreement, the sender, whether or not cancellation oramendment is effective, is liable to the bank for any loss and expenses,including reasonable attorney's fees, incurred by the bank as a result of thecancellation or amendment or attempted cancellation or amendment.
(g) A payment order is not revoked by the death or legal incapacity of thesender unless the receiving bank knows of the death or of an adjudication ofincapacity by a court of competent jurisdiction and has reasonableopportunity to act before acceptance of the order.
(h) A funds-transfer system rule is not effective to the extent it conflictswith subdivision (c) (2) of this section.
