8.4A-201 - A-201. Security procedure. - Virginia Statutes

§ 8.4A-201. Security procedure.

"Security procedure" means a procedure established by agreement of acustomer and a receiving bank for the purpose of (i) verifying that a paymentorder or communication amending or cancelling a payment order is that of thecustomer, or (ii) detecting error in the transmission or the content of thepayment order or communication. A security procedure may require the use ofalgorithms or other codes, identifying words or numbers, encryption, callbackprocedures, or similar security devices. Comparison of a signature on apayment order or communication with an authorized specimen signature of thecustomer is not by itself a security procedure.

(1990, c. 9.)