Ky. Rev. Stat. § 355.4A-201

Current through 2024 Ky. Acts ch. 225

Section 355.4A-201 - [Effective Until 1/1/2025] 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.

KRS 355.4A-201

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.