N.Y. UCC Law § 4-A-211 — New York Code / Act UCC / Article 4-A / Part 2 / Section 4-A-211
Cancellation and Amendment of Payment Order
Status: in_force

Section 4-A-211. Cancellation and Amendment of Payment Order.\n  (1) A communication of the sender of a payment order cancelling or\namending the order may be transmitted to the receiving bank orally or in\na record. If a security procedure is in effect between the sender and\nthe receiving bank, the communication is not effective to cancel or\namend the order unless the communication is verified pursuant to the\nsecurity procedure or the bank agrees to the cancellation or amendment.\n  (2) Subject to subsection (1), a communication by the sender\ncancelling or amending a payment order is effective to cancel or amend\nthe order if notice of the communication is received at a time and in a\nmanner affording the receiving bank a reasonable opportunity to act on\nthe communication before the bank accepts the payment order.\n  (3) After a payment order has been accepted, cancellation or amendment\nof the order is not effective unless the receiving bank agrees or a\nfunds-transfer system rule allows cancellation or amendment without\nagreement of the bank.\n       (a) With respect to a payment order accepted by a receiving bank\n           other than the beneficiary's bank, cancellation or amendment\n           is not effective unless a conforming cancellation or\n           amendment of the payment order issued by the receiving bank\n           is also made.\n       (b) With respect to a payment order accepted by the beneficiary's\n           bank, cancellation or amendment is not effective unless the\n           order was issued in execution of an unauthorized payment\n           order, or because of a mistake by a sender in the funds\n           transfer which resulted in the issuance of a payment order\n           (i) that is a duplicate of a payment order previously issued\n           by the sender, (ii) that orders payment to a beneficiary not\n           entitled to receive payment from the originator, or (iii)\n           that orders payment in an amount greater than the amount the\n           beneficiary was entitled to receive from the originator. If\n           the payment order is cancelled or amended, the beneficiary's\n           bank is entitled to recover from the beneficiary any amount\n           paid to the beneficiary to the extent allowed by the law\n           governing mistake and restitution.\n  (4) An unaccepted payment order is cancelled by operation of law at\nthe close of the fifth funds-transfer business day of the receiving bank\nafter the execution date or payment date of the order.\n  (5) A cancelled payment order cannot be accepted. If an accepted\npayment order is cancelled, the acceptance is nullified and no person\nhas any right or obligation based on the acceptance. Amendment of a\npayment order is deemed to be cancellation of the original order at the\ntime of amendment and issue of a new payment order in the amended form\nat the same time.\n  (6) Unless otherwise provided in an agreement of the parties or in a\nfunds-transfer system rule, if the receiving bank, after accepting a\npayment order, agrees to cancellation or amendment of the order by the\nsender or is bound by a funds-transfer system rule allowing cancellation\nor amendment without the bank's agreement, the sender, whether or not\ncancellation or amendment is effective, is liable to the bank for any\nloss and expenses, including reasonable attorney's fees, incurred by the\nbank as a result of the cancellation or amendment or attempted\ncancellation or amendment.\n  (7) A payment order is not revoked by the death or legal incapacity of\nthe sender unless the receiving bank knows of the death or of an\nadjudication of incapacity by a court of competent jurisdiction and has\nreasonable opportunity to act before acceptance of the order.\n  (8) A funds-transfer system rule is not effective to the extent it\nconflicts with paragraph (b) of subsection (3).\n