"Security procedure" means a procedure established by agreement of a customer and a receiving bank for the purpose of verifying that a payment order or communication amending or cancelling a payment order is that of the customer, or 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.
Effective Date: 10-23-1991
Section: Previous 1304.39 1304.40 1304.51 1304.52 1304.53 1304.54 1304.55 1304.56 1304.57 1304.58 1304.59 1304.60 1304.61 1304.62 1304.63 NextLast modified: October 10, 2016