TITLE 6A
Uniform Commercial Code

CHAPTER 6A-4.1
Funds Transfers

PART 6A-4.1-201
Issue and Acceptance of Payment Order

SECTION 6A-4.1-201


§ 6A-4.1-201 Security procedure.

"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.

History of Section.
(P.L. 1991, ch. 189, § 1.)