PART 2. 
ISSUE AND ACCEPTANCE OF PAYMENT ORDER



 



§490:4A-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 canceling 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. [L 1991, c 41, pt of §1]