Legislation
SECTION 4-A-201
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.
* NB Effective until June 3, 2026
* 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
impose an obligation on the receiving bank or the customer and may
require the use of algorithms or other codes, identifying words,
numbers, symbols, sounds, biometrics, 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 or requiring a payment order to be sent from a known email
address, IP address, or telephone number is not by itself a security
procedure.
* NB Effective June 3, 2026
"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.
* NB Effective until June 3, 2026
* 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
impose an obligation on the receiving bank or the customer and may
require the use of algorithms or other codes, identifying words,
numbers, symbols, sounds, biometrics, 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 or requiring a payment order to be sent from a known email
address, IP address, or telephone number is not by itself a security
procedure.
* NB Effective June 3, 2026