§ 6A-4.1-201. 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.
History of Section.P.L. 1991, ch. 189, § 1.
Structure Rhode Island General Laws
Title 6A - Uniform Commercial Code
Chapter 6A-4.1 - Funds Transfers
Part 2 - Issue and Acceptance of Payment Order
Section 6A-4.1-201. - Security procedure.
Section 6A-4.1-202. - Authorized and verified payment orders.
Section 6A-4.1-203. - Unenforceability of certain verified payment orders.
Section 6A-4.1-205. - Erroneous payment orders.
Section 6A-4.1-207. - Misdescription of beneficiary.
Section 6A-4.1-208. - Misdescription of intermediary bank or beneficiary’s bank.
Section 6A-4.1-209. - Acceptance of payment order.
Section 6A-4.1-210. - Rejection of payment order.
Section 6A-4.1-211. - Cancellation and amendment of payment order.
Section 6A-4.1-212. - Liability and duty of receiving bank regarding unaccepted payment order.