§ 4A201. Security procedure.
"Security procedure" means a procedure established by agreement of a customer and a receiving bank for the purpose of:
(1) verifying that a payment order or communication amending or canceling a payment order is that of the customer; or
(2) 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.
Cross References. Section 4A201 is referred to in section 4A105 of this title.Section: 4a201 4a202 4a203 4a204 4a205 4a206 4a207 4a208 4a209 4a210 4a211 4a212 Next
Last modified: October 8, 2016