Nevada § 104A.4211 - Cancellation and amendment of payment order

§ 104A.4211. 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 or in a record. 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. Except as otherwise provided in 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. The following rules also apply: (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 that is a duplicate of a payment order previously

issued by the sender, that orders payment to a beneficiary not entitled to receive

payment from the originator, or 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.