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Cancellation and amendment of payment order - 13 Pa. Cons. Stat. § 4A211

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     § 4A211.  Cancellation and amendment of payment order.
        (a)  Communication.--A communication of the sender of a
     payment order canceling 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)  Communication received before payment order accepted.--
     Subject to subsection (a), a communication by the sender
     canceling 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)  Communication received after payment order accepted.--
     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 canceled 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)  When unaccepted payment order canceled by operation of
     law.--An unaccepted payment order is canceled 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)  Canceled payment order.--A canceled payment order cannot
     be accepted. If an accepted payment order is canceled, 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)  Liability of sender.--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
     fees, incurred by the bank as a result of the cancellation or
     amendment or attempted cancellation or amendment.
        (g)  When payment order revoked by death or incompetency.--A
     payment order is not revoked by the death or incompetency of the
     sender unless the receiving bank knows of the death or of an
     adjudication of incompetency under 20 Pa.C.S. Ch. 55 (relating
     to incapacitated persons) and has reasonable opportunity to act
     before acceptance of the order.
        (h)  When funds-transfer system rule not effective.--A funds-
     transfer system rule is not effective to the extent it conflicts
     with subsection (c)(2).

        Cross References.  Section 4A211 is referred to in sections
     4A209, 4A210, 4A404, 4A406 of this title.

Last modified: November 27, 2007