440.4701 “Security procedure” defined.
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/mi/chapter-440/440-4701A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
440.4701 “Security procedure” defined.
Sec. 4A201.
"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 of 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.
History: Add. 1992, Act 100, Imd. Eff. June 25, 1992