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§ 4A-201. Security procedure

West's Annotated Code of MarylandCommercial Law

West's Annotated Code of Maryland
Commercial Law
Title 4a. Funds Transfers (Refs & Annos)
Subtitle 2. Issue and Acceptance of Payment Order (Refs & Annos)
MD Code, Commercial Law, § 4A-201
§ 4A-201. Security procedure
Currentness
(a) “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 cancelling a payment order is that of the customer; or
(2) Detecting error in the transmission or the content of the payment order or communication.
(b) A “security procedure” may require the use of algorithms or other codes, identifying words or numbers, encryption, callback procedures, or similar security devices.
(c) 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”.

Credits

Added by Acts 1991, c. 548, § 1, eff. July 1, 1991.
MD Code, Commercial Law, § 4A-201, MD COML § 4A-201
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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