Title 11, Chapter 4A, Section 201
( 11-4A-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. |