"Security procedure" means a procedure established by agreement of 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.
Section: 4-4a-202 4-4a-203 4-4a-204 4-4a-205 4-4a-206 4-4a-207 4-4a-208 4-4a-209 4-4a-210 4-4a-211 4-4a-212 NextLast modified: November 15, 2016