diff --git a/api/namex/VERSION.py b/api/namex/VERSION.py
index 3d26e8255..ff436ff2e 100644
--- a/api/namex/VERSION.py
+++ b/api/namex/VERSION.py
@@ -1 +1 @@
-__version__ = '1.2.23'
+__version__ = '1.2.24'
diff --git a/api/namex/resources/payment_societies.py b/api/namex/resources/payment_societies.py
index 5664593ec..5d6d13f58 100644
--- a/api/namex/resources/payment_societies.py
+++ b/api/namex/resources/payment_societies.py
@@ -5,7 +5,7 @@
 from sqlalchemy.orm.exc import NoResultFound
 
 from namex import jwt
-from namex.models import PaymentSociety as PaymentSocietyDAO, Request as RequestDAO, User
+from namex.models import State, PaymentSociety as PaymentSocietyDAO, Request as RequestDAO, User
 from namex.utils.auth import cors_preflight
 
 from namex.utils.logging import setup_logging
@@ -121,7 +121,8 @@ def post(self):
         ps_instance.save_to_db()
         current_app.logger.debug(f'ps_instance saved...')
 
-        nrd.stateCd = 'DRAFT'
+        if nrd.stateCd == State.PENDING_PAYMENT:
+            nrd.stateCd = 'DRAFT'
         nrd.save_to_db()
         current_app.logger.debug(f'nrd saved...')
         
diff --git a/api/namex/services/name_request/utils.py b/api/namex/services/name_request/utils.py
index d18355661..bdaea1f4f 100644
--- a/api/namex/services/name_request/utils.py
+++ b/api/namex/services/name_request/utils.py
@@ -147,6 +147,12 @@ def valid_state_transition(user, nr, new_state):
     :param new_state:
     :return: (bool)
     """
+    # when the legacy user just created a new NR from legacy side, the user should be allowed to
+    # modify and cancel it from the legacy side (while the NR still in DRAFT state).
+    if (nr.stateCd == State.DRAFT or nr.stateCd == State.APPROVED  or nr.stateCd == State.CANCELLED)   \
+        and (new_state == State.DRAFT or new_state == State.CANCELLED):
+        return True
+
     if (new_state in (State.APPROVED,
                       State.REJECTED,
                       State.CONDITIONAL)) \