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Can you summarize IACO 554.12211?
UNIFORM COMMERCIAL CODE > Cancellation and amendment of payment order.
Short Summary
This legal document, governed by the Iowa Code under the Uniform Commercial Code, pertains to the cancellation and amendment of payment orders. It outlines the various methods of communication for canceling or amending a payment order, including oral, electronic, or written means. The effectiveness of the cancellation or amendment depends on factors such as verification through a security procedure or agreement from the receiving bank. The document also specifies that cancellation or amendment is only effective if the receiving bank agrees or if a funds-transfer system rule allows it. Additionally, it states that unaccepted payment orders are automatically canceled after the fifth funds-transfer business day. The document clarifies that canceled payment orders cannot be accepted, and if an accepted payment order is canceled, the acceptance is nullified. It also highlights the liability of the sender to the bank for any loss and expenses incurred due to cancellation or amendment. The document further addresses the revocation of payment orders in the event of the sender’s death or legal incapacity. Finally, it states that funds-transfer system rules are not effective if they conflict with certain provisions of the document. Overall, this legal document provides guidelines and regulations for the cancellation and amendment of payment orders in Iowa.
Whom does it apply to?
Senders and receiving banks involved in payment orders
What does it govern?
Cancellation and amendment of payment orders
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Liability to the bank for any loss and expenses incurred as a result of cancellation or amendment
Jurisdiction
Iowa