Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

(a) 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.
(b) Subject to subsection (a), 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.
(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 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.
(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'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
History: 1990 c 582 art 1 s 19