336.4A-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.
History: 1990 c 582 art 1 s 9