12A:4A-201 - Security procedureĀ
12A:4A-201. Security procedureĀ
Ā 12A:4A-201.Ā Security procedure.
Ā
"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.Ā A security procedure may require the use of algorithms or other codes, identifying words or numbers, encryption, callback procedures, or similar security devices.Ā 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.Ā
L.1994,c.114,s.2.Ā
Ā
Ā 12A:4A-201.Ā Security procedure.
Ā
"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.Ā A security procedure may require the use of algorithms or other codes, identifying words or numbers, encryption, callback procedures, or similar security devices.Ā 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.Ā
L.1994,c.114,s.2.Ā
Ā