Tenn. Code § 47-4A-201

Current through Acts 2023-2024, ch. 1003

Section 47-4A-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.

T.C.A. § 47-4A-201

Acts 1991, ch. 52, § 1.