24.26.010 Security Procedure

"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. 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.