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Section: 400.04A.0211 Cancellation and amendment of payment order. RSMO 400.4A-211


Published: 2015

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Missouri Revised Statutes













Chapter 400

Uniform Commercial Code

←400.4A-210

Section 400.4A-211.1

400.4A-212→

August 28, 2015

Cancellation and amendment of payment order.

400.4A-211. (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 subsection (c)(2).



(L. 1992 S.B. 448)







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