                                 CODE OF VIRGINIA

CANCELLATION AND AMENDMENT OF PAYMENT ORDER (§ 8.4A-211)

a. A communication of the sender of a payment order cancelling or amending the
order may be transmitted to the receiving bank orally 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.

b. Subject to subsection (a) of this section, 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&#8217;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&#8217;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&#8217;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 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. 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. 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&#8217;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&#8217;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
subdivision (c) (2) of this section.

HISTORY: 1990, c. 9; 2024, c. 652.