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.
Structure Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 1 - Uniform Commercial Code
Part 2 - Issue and Acceptance of Payment Order
§ 4-4A-201. Security procedure
§ 4-4A-202. Authorized and verified payment orders
§ 4-4A-203. Unenforceability of certain verified payment orders
§ 4-4A-205. Erroneous payment orders
§ 4-4A-206. Transmission of payment order through funds-transfer or other communication system
§ 4-4A-207. Misdescription of beneficiary
§ 4-4A-208. Misdescription of intermediary bank or beneficiary's bank
§ 4-4A-209. Acceptance of payment order
§ 4-4A-210. Rejection of payment order
§ 4-4A-211. Cancellation and amendment of payment order
§ 4-4A-212. Liability and duty of receiving bank regarding unaccepted payment order