§ 10:4A-211 — Cancellation and amendment of payment order

Louisiana § 10:4A-211

• Jurisdiction: Louisiana
• Title 10: Commercial Laws

Text

§4A-211. Cancellation and amendment of payment order
(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), 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'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 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.
(d) 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.
(e) 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.
(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'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.
(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
Subsection (c)(2).

Legislative History

Added by Acts 1990, No. 1079, §4, eff. Sept. 1, 1990; Acts 2024, No. 773, §1.