13 Pa. C.S. § 4A201

Current through 2024 legislation effective May 8, 2024

Section 4A201 - Security procedure

"Security procedure" means a procedure established by agreement of a customer and a receiving bank for the purpose of:

(1) verifying that a payment order or communication amending or canceling a payment order is that of the customer; or

(2) 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.

13 Pa.C.S. § 4A201

1992, July 9, P.L. 507, No. 97, § 15, effective in one year.