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This entry was published on 2014-09-22
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Security Procedure
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 4-A, PART 2
Section 4-A-201. Security Procedure.

"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.