{"data":{"id":"us-ky/krs-355.4a-211","jurisdiction":"us-ky","citation":"KRS 355.4A-211","heading":"Cancellation and amendment of payment order.","body":"(1) (a) A communication of the sender of a payment order canceling or amending the\norder may be transmitted to the receiving bank orally or in a record.\n(b) If a security procedure is in effect between the sender and the receiving bank,\nthe communication is not ef fective to cancel or amend the order unless the\ncommunication is verified pursuant to the security procedure or the bank\nagrees to the cancellation or amendment.\n(2) Subject to subsection (1) of this section, a communication by the sender canceling\nor amending a payment order is effective to cancel or amend the order if notice of\nthe communication is received at a time and in a manner affording the receiving\nbank a reasonable opportunity to act on the communication before the bank accepts\nthe payment order.\n(3) (a) After a payment order has been accepted, cancellation or amendment of the\norder is not effective unless the receiving bank agrees or a funds -transfer\nsystem rule allows cancellation or amendment without agreement of the bank.\n(b) With respect to a  payment order accepted by a receiving bank other than the\nbeneficiary's bank, cancellation or amendment is not effective unless a\nconforming cancellation or amendment of the payment order issued by the\nreceiving bank is also made.\n(c) With respect to a pa yment order accepted by the beneficiary's bank,\ncancellation or amendment is not effective unless the order was issued in\nexecution of an unauthorized payment order, or because of a mistake by a\nsender in the funds transfer which resulted in the issuance of a payment order:\n1. That is a duplicate of a payment order previously issued by the sender;\n2. That orders payment t o a beneficiary not entitled to receive payment\nfrom the originator; or\n3. That orders payment in an amount greater than the amount the\nbeneficiary was entitled to receive from the originator. If the payment\norder is canceled or amended, the beneficiary's bank is entitled to\nrecover from the beneficiary any amount paid to the beneficiary to the\nextent allowed by the law governing mistake and restitution.\n(4) An unaccepted payment order is canceled by operation of law at the close of the\nfifth funds-transfer business day of the receiving bank after the execution date or\npayment date of the order.\n(5) (a) A canceled payment order cannot be accepted.\n(b) If an accepted payment order is canceled, the acceptance is nullified and no\nperson has any right or obligation based on the acceptance.\n(c) Amendment of a payment order is deemed to be cancellation of the original\norder at the time of amendment and issue of a new payment order in the\namended form at the same time.\n(6) Unless otherwise provided in an agreement o f the parties or in a funds -transfer\nsystem rule, if the receiving bank, after accepting a payment order, agrees to\ncancellation or amendment of the order by the sender or is bound by a funds -\ntransfer system rule allowing cancellation or amendment without the bank's\nagreement, the sender, whether or not cancellation or amendment is effective, is\nliable to the bank for any loss and expenses, including reasonable attorney's fees,\nincurred by the bank as a result of the cancellation or amendment or attempted\ncancellation or amendment.\n(7) A payment order is not revoked by the death or legal incapacity of the sender unless\nthe receiving bank knows of the death or of an adjudication of incapacity by a court\nof competent jurisdiction and has reasonable opportunity  to act before acceptance\nof the order.\n(8) A funds -transfer system rule is not effective to the extent it conflicts with\nsubsection (3)(c) of this section.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55657","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"3f61662ce49144e4a132ab696959b3b7370f9fa1390adc8d07b145cae3809c02","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.4a-210","next":"us-ky/krs-355.4a-212"},"notice":"GroundRules: Original legal text. Not legal advice."}