What's the significance here?
Countermand means to cancel, deny, or reverse an order that has been previously issued. In this manner it is utilized as an action word. As a thing, it alludes to the order given that is contrary to the previous order. In the financial world, countermand is generally applicable to payments; it means a customer of a bank or financial institution renouncing guidelines to pay, or halting payment to another party. It can happen when a payer stops payment on a check or stops/reverses a transfer of funds. Countermand of payment by the customer then, at that point, closes the legal duty of the bank or institution to make the payment to the party, as originally indicated by the customer.
Figuring out a Countermand
In finance, countermand is generally utilized in the context of halting a payment. On account of check payments, a customer can countermand the payment whenever before the check is introduced, through a stop-payment order. Where electronic fund transfers are concerned, on the off chance that the funds have not yet been transferred, a countermand order would cancel the original funds transfer order. Assuming the funds have previously been transferred, the financial institution would commence the interaction to reverse the funds transfer.
Countermanding an international funds transfer is more complicated than a domestic funds transfer. The countermand operation relies upon whether the funds transfer is revocable or irrevocable. Moreover, it likewise relies upon whether a payment can be said to have been completed with the end goal that the customer can't renounce the order. In the last context, technology assumes an important part. For instance, the Federal Reserve's Clearing House Interbank Payments System (CHIPS) was considered to be an irrevocable form of funds transfer by the courts in Delbrueck and Co. v. Manufacturers Hanover Trust Company in 1979. All things considered, a countermand operation may not be effective in halting a funds transfer for such cases.
- In the context of the finance industry, it alludes to halting a payment order that has previously been issued.
- Countermand means to cancel, disavow, or reverse an order that has previously been issued.
- Countermanding an international funds transfer order relies upon whether the payment has been completed and on the technology platform utilized.