104A.4201 - Security procedure. - Nevada Statutes

104A.4201  Security procedure.

      1.  “Security procedure” means a procedure established by agreement of a customer and a receiving bank to:

      (a) Verify that a payment order or communication amending or cancelling a payment order is that of the customer; or

      (b) Detect error in the transmission or the content of the payment order or communication.

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

      3.  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.

      (Added to NRS by 1991, 432)