§ 25-4A-201. Security procedure. - North Carolina Statutes

Part 2.

ISSUE AND ACCEPTANCE OF PAYMENTORDER.

§ 25‑4A‑201. Security procedure.

"Security procedure"means a procedure established by agreement of a customer and a receiving bankfor the purpose of (i) verifying that a payment order or communication amendingor cancelling a payment order is that of the customer, or (ii) detecting errorin the transmission or the content of the payment order or communication.  Asecurity procedure may require the use of algorithms or other codes,identifying words or numbers, encryption, call‑back procedures, orsimilar security devices.  Comparison of a signature on a payment order orcommunication with an authorized specimen signature of the customer is not byitself a security procedure. (1993, c. 157, s. 1.)