400.4A-201. Security procedure.
Security procedure.
400.4A-201. "Security procedure" means a procedureestablished by agreement of a customer and a receiving bank forthe purpose of (i) verifying that a payment order orcommunication amending or canceling a payment order is that ofthe customer, or (ii) detecting error in the transmission or thecontent of the payment order or communication. A securityprocedure may require the use of algorithms or other codes,identifying words or numbers, encryption, callback procedures, orsimilar security devices. Comparison of a signature on a paymentorder or communication with an authorized specimen signature ofthe customer is not by itself a security procedure.
(L. 1992 S.B. 448)