§ 6A-4.1-201 - Security procedure. - Rhode Island Statutes

SECTION 6A-4.1-201

   § 6A-4.1-201  Security procedure. –"Security procedure" means a procedure established by agreement of a customerand a receiving bank for the purpose of (i) verifying that a payment order orcommunication amending or cancelling a payment order is that of the customer,or (ii) detecting error in the transmission or the content of the payment orderor communication. A security procedure may require the use of algorithms orother codes, identifying words or numbers, encryption, callback 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.