Section 355.4A-201 - [Effective 1/1/2025] Security procedure(1) "Security procedure" means a procedure established by agreement of a customer and a receiving bank for the purpose of: (a) Verifying that a payment order or communication amending or canceling a payment order is that of the customer; or(b) Detecting error in the transmission or the content of the payment order or communication.(2) A security procedure may: (a) Impose an obligation on the receiving bank or the customer; and (b) Require the use of algorithms or other codes, identifying words , numbers, symbols, sounds, biometrics, encryption, callback procedures, or similar security devices.(3) 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 email address, IP address, or phone number is not by itself a security procedure.Amended by 2024 Ky. Acts ch. 10,§ 27, eff. 1/1/2025.Effective:7/14/1992
Created 1992 Ky. Acts ch. 116, sec. 32, effective7/14/1992.This section is set out more than once due to postponed, multiple, or conflicting amendments.