California Law (Last Updated: March 4, 2014) |
Commercial Code - COM |
Division 11. FUNDS TRANSFERS |
Chapter 2. Issue and Acceptance of Payment Order |
Section 11201.
Latest version.
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"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 canceling 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.
(Added by Stats. 1990, Ch. 125, Sec. 2.)