ORS 74A.2110
Cancellation and amendment of payment order


A communication of the sender of a payment order canceling 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.


Subject to subsection (1) of this section, a communication by the sender canceling 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.


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 apply:


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.


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 canceled 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.


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.


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.


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 fees, incurred by the bank as a result of the cancellation or amendment or attempted cancellation or amendment.


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.


A funds-transfer system rule is not effective to the extent it conflicts with subsection (3)(b) of this section. [1991 c.442 §19]

Source: Section 74A.2110 — Cancellation and amendment of payment order, https://www.­oregonlegislature.­gov/bills_laws/ors/ors74A.­html.

Short title
Subject matter
Payment order
Funds transfer
Other definitions
Time payment order is received
Federal Reserve regulations and operating circulars
Exclusion of consumer transactions covered by federal law
Security procedure
Authorized and verified payment orders
Unenforceability of certain verified payment orders
Refund of payment and duty of customer to report with respect to unauthorized payment order
Erroneous payment orders
Transmission of payment order through funds transfer or other communication system
Misdescription of beneficiary
Misdescription of intermediary bank or beneficiary’s bank
Acceptance of payment order
Rejection of payment order
Cancellation and amendment of payment order
Liability and duty of receiving bank regarding unaccepted payment order
Execution and execution date
Obligations of receiving bank in execution of payment order
Erroneous execution of payment order
Duty of sender to report erroneously executed payment order
Liability for late or improper execution or failure to execute payment order
Payment date
Obligation of sender to pay receiving bank
Payment by sender to receiving bank
Obligation of beneficiary’s bank to pay and give notice to beneficiary
Payment by beneficiary’s bank to beneficiary
Payment by originator to beneficiary
Variation by agreement and effect of funds-transfer system rule
Creditor process served on receiving bank
Injunction or restraining order with respect to funds transfer
Order in which items and payment orders may be charged to account
Preclusion of objection to debit of customer’s account
Rate of interest
Choice of law
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