New York Laws
Part 2 - Issue and Acceptance of Payment Order
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).