Section 1304.56 | Security procedure - UCC 4A-201.
Security procedure [UCC 4A-201]
"Security procedure" means a procedure established by agreement of a customer and a receiving bank for the purpose of verifying that a payment order or communication amending or cancelling a payment order is that of the customer, or detecting error in the transmission or the content of the payment order or communication. A security procedure may impose an obligation on the receiving bank or customer and may require the use of algorithms or other codes, identifying words, numbers, symbols, sounds, biometrics, 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 or requiring a payment order to be sent from a known electronic mail address, internet protocol address, or telephone number is not by itself a security procedure.
Last updated July 20, 2026 at 3:07 PM
Available Versions of this Section
- October 23, 1991 – House Bill 221 - 119th General Assembly [ View October 23, 1991 Version ]
- October 6, 2026 – Amended by House Bill 195 - 136th General Assembly [ View October 6, 2026 Version ]