§490:4A-201 - Security procedure. - Hawaii Statutes

PART 2.  ISSUE AND ACCEPTANCE OF PAYMENT ORDER

 

     §490:4A-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. [L 1991, c 41, pt of §1]