Sec. 4A.201. SECURITY PROCEDURE. "Security procedure" means a procedure established by an agreement between 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.
Added by Acts 1993, 73rd Leg., ch. 570, Sec. 7, eff. Sept. 1, 1993.
Structure Texas Statutes
Title 1 - Uniform Commercial Code
Subchapter B. Issue and Acceptance of Payment Order
Section 4A.201. Security Procedure
Section 4A.202. Authorized and Verified Payment Orders
Section 4A.203. Unenforceability of Certain Verified Payment Orders
Section 4A.205. Erroneous Payment Orders
Section 4A.206. Transmission of Payment Order Through Funds Transfer or Other Communication System
Section 4A.207. Misdescription of Beneficiary
Section 4A.208. Misdescription of Intermediary Bank or Beneficiary's Bank
Section 4A.209. Acceptance of Payment Order
Section 4A.210. Rejection of Payment Order
Section 4A.211. Cancellation and Amendment of Payment Order
Section 4A.212. Liability and Duty of Receiving Bank Regarding Unaccepted Payment Order