Sec. 42a-4A-211. Cancellation and amendment of payment order.
Sec. 42a-4A-211. Cancellation and amendment of payment order. (a) A communication of the sender of a payment order cancelling or amending the order may
be transmitted to the receiving bank orally, electronically, or in writing. If a security
procedure is in effect between the sender and the receiving bank, the communication
is not effective to cancel or amend the order unless the communication is verified pursuant to the security procedure or the bank agrees to the cancellation or amendment.
(b) Subject to subsection (a), a communication by the sender cancelling or amending
a payment order is effective to cancel or amend the order if notice of the communication
is received at a time and in a manner affording the receiving bank a reasonable opportunity to act on the communication before the bank accepts the payment order.
(c) After a payment order has been accepted, cancellation or amendment of the
order is not effective unless the receiving bank agrees or a funds- transfer system rule
allows cancellation or amendment without agreement of the bank.
(1) With respect to a payment order accepted by a receiving bank other than the
beneficiary's bank, cancellation or amendment is not effective unless a conforming
cancellation or amendment of the payment order issued by the receiving 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 in execution of an unauthorized
payment order, or because of a mistake by a sender in the funds transfer which resulted
in the issuance of a payment 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 the originator, or (iii) that orders payment in an amount greater than the
amount the beneficiary was entitled to receive from the originator. If the payment order
is cancelled or amended, the beneficiary's bank is entitled to recover from the beneficiary
any amount paid to the beneficiary to the extent allowed by the law governing mistake
and restitution.
(d) An unaccepted payment order is cancelled by operation of law at the close of
the fifth funds-transfer business day of the receiving bank after the execution date or
payment date of the order.
(e) A cancelled payment order cannot be accepted. If an accepted payment order is
cancelled, the acceptance is nullified and no person has any right or obligation based
on the acceptance. Amendment of a payment order is deemed to be cancellation of the
original order at the time of amendment and issue of a new payment order in the amended
form at the same time.
(f) Unless otherwise provided in an agreement of the parties or in a funds-transfer
system rule, if the receiving bank, after accepting a payment order, agrees to cancellation
or amendment of the order by the sender or is bound by a funds-transfer system rule
allowing cancellation or amendment without the bank's agreement, the sender, whether
or not cancellation or amendment 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 the
cancellation or amendment or attempted cancellation or amendment.
(g) A payment order is not revoked by the death or legal incapacity of the sender
unless the receiving bank knows of the death or of an adjudication of incapacity by a
court of competent jurisdiction and has reasonable opportunity to act before acceptance
of the order.
(h) A funds-transfer system rule is not effective to the extent it conflicts with subdivision (2) of subsection (c).
(P.A. 90-202, S. 1(4A-211), 3.)