4A201 - Security procedure.
CHAPTER 4A2 ISSUE AND ACCEPTANCE OF PAYMENT ORDER Sec. 4A201. Security procedure. 4A202. Authorized and verified payment orders. 4A203. Unenforceability of certain verified payment orders. 4A204. Refund of payment and duty of customer to report with respect to unauthorized payment order. 4A205. Erroneous payment orders. 4A206. Transmission of payment order through funds-transfer or other communication system. 4A207. Misdescription of beneficiary. 4A208. Misdescription of intermediary bank or beneficiary's bank. 4A209. Acceptance of payment order. 4A210. Rejection of payment order. 4A211. Cancellation and amendment of payment order. 4A212. Liability and duty of receiving bank regarding unaccepted payment order. Enactment. Chapter 4A2 was added July 9, 1992, P.L.507, No.97, effective in one year. § 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.