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NEW JERSEY STATUTES AND CODES

12A:4A-201 - Security procedure 

12A:4A-201.    Security procedure 
  12A: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 cancelling 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.1994,c.114,s.2. 
 

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