13 Pennsylvania Consolidated Statutes § 4a201 - Security Procedure

§ 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