Legislation

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.