400.4A-211. Cancellation and amendment of payment order. - Missouri Statutes

Cancellation and amendment of payment order.

400.4A-211. (a) A communication of the sender of a paymentorder canceling or amending the order may be transmitted to thereceiving bank orally, electronically, or in writing. If asecurity procedure is in effect between the sender and thereceiving bank, the communication is not effective to cancel oramend the order unless the communication is verified pursuant tothe security procedure or the bank agrees to the cancellation oramendment.

(b) Subject to subsection (a), a communication by thesender canceling or amending a payment order is effective tocancel or amend the order if notice of the communication isreceived at a time and in a manner affording the receiving bank areasonable opportunity to act on the communication before thebank accepts the payment order.

(c) After a payment order has been accepted, cancellationor amendment of the order is not effective unless the receivingbank agrees or a funds-transfer system rule allows cancellationor amendment without agreement of the bank.

(1) With respect to a payment order accepted by a receivingbank other than the beneficiary's bank, cancellation or amendmentis not effective unless a conforming cancellation or amendment ofthe payment order issued by the receiving bank is also made.

(2) With respect to a payment order accepted by thebeneficiary's bank, cancellation or amendment is not effectiveunless the order was issued in execution of an unauthorizedpayment order, or because of a mistake by a sender in the fundstransfer which resulted in the issuance of a payment order (i)that is a duplicate of a payment order previously issued by thesender, (ii) that orders payment to a beneficiary not entitled toreceive payment from the originator, or (iii) that orders paymentin an amount greater than the amount the beneficiary was entitledto receive from the originator. If the payment order is canceledor amended, the beneficiary's bank is entitled to recover fromthe beneficiary any amount paid to the beneficiary to the extentallowed by the law governing mistake and restitution.

(d) An unaccepted payment order is canceled by operation oflaw at the close of the fifth funds-transfer business day of thereceiving bank after the execution date or payment date of theorder.

(e) A canceled payment order cannot be accepted. If anaccepted payment order is canceled, the acceptance is nullifiedand no person has any right or obligation based on theacceptance. Amendment of a payment order is deemed to becancellation of the original order at the time of amendment andissue of a new payment order in the amended form at the sametime.

(f) Unless otherwise provided in an agreement of theparties or in a funds-transfer system rule, if the receivingbank, after accepting a payment order, agrees to cancellation oramendment of the order by the sender or is bound by afunds-transfer system rule allowing cancellation or amendmentwithout the bank's agreement, the sender, whether or notcancellation or amendment is effective, is liable to the bank forany loss and expenses, including reasonable attorney's fees,incurred by the bank as a result of the cancellation or amendmentor attempted cancellation or amendment.

(g) A payment order is not revoked by the death or legalincapacity of the sender unless the receiving bank knows of thedeath or of an adjudication of incapacity by a court of competentjurisdiction and has reasonable opportunity to act beforeacceptance of the order.

(h) A funds-transfer system rule is not effective to theextent it conflicts with subsection (c)(2).

(L. 1992 S.B. 448)