2006 New York Code - Cancellation And Amendment Of Payment Order.

 
  Section 4-A-211. Cancellation and Amendment of Payment Order.
    (1)  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.
    (2)   Subject  to  subsection  (1),  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.
    (3) 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.
         (a) 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.
         (b) 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.
    (4)  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.
    (5) 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.
    (6)  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.
    (7) 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.
    (8)  A  funds-transfer  system  rule is not effective to the extent it
  conflicts with paragraph (b) of subsection (3).