11 §4-1201. Security procedure - Maine Statutes

Title 11: UNIFORM COMMERCIAL CODE

Article 4-A: FUNDS TRANSFERS HEADING: PL 1991, C. 812, §2 (NEW)

Part 2: ISSUE AND ACCEPTANCE OF PAYMENT ORDER HEADING: PL 1991, C. 812, §2 (NEW)

§4-1201. Security procedure

"Security procedure" means a procedure established by agreement of a customer and a receiving bank for the purpose of: [1991, c. 812, §2 (NEW).]

(1). Verifying that a payment order or communication amending or cancelling a payment order is that of the customer; or

[ 1991, c. 812, §2 (NEW) .]

(2). Detecting error in the transmission or the content of the payment order or communication.

[ 1991, c. 812, §2 (NEW) .]

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. [1991, c. 812, §2 (NEW).]

SECTION HISTORY

1991, c. 812, §2 (NEW).