Texas Business & Commerce Code - Section 4A.201. Security Procedure
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§ 4A.201. SECURITY PROCEDURE. "Security procedure"
means a procedure established by an agreement between a customer
and a receiving bank for the purpose of (i) verifying that a payment
order or communication amending or cancelling a payment order is
that of the customer, or (ii) detecting error in the transmission or
the content of the payment order or communication. A security
procedure may require the use of algorithms or other codes,
identifying words or numbers, encryption, callback procedures, or
similar security devices. Comparison of a signature on a payment
order or communication with an authorized specimen signature of the
customer is not by itself a security procedure.
Added by Acts 1993, 73rd Leg., ch. 570, § 7, eff. Sept. 1, 1993.
Section: 4A.102 4A.103 4A.104 4A.105 4A.106 4A.107 4A.108 4A.201 4A.202 4A.203 4A.204 4A.205 4A.206 4A.207 4A.208
Last modified: August 10, 2007
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