§ 4A-201. 4A-201
104 words·~1 min read·
/us/ucc/a4A/s4A-201·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
" 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. 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.