“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 cancelling 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.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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