Section 201 - Security procedure. - Maryland Statutes

§ 4A-201. Security procedure.
 

(a)  "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. 

(b)  A "security procedure" may require the use of algorithms or other codes, identifying words or numbers, encryption, callback procedures, or similar security devices. 

(c)  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, ch. 548.]