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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