New York § 4-A-201 Security Procedure

New York Statutes

§ 4-A-201 — Security Procedure

New York § 4-A-201

Law UCCUniform Commercial Code

Part 2Issue and Acceptance of Payment Order

Art. 4-AFunds Transfers

This text of New York § 4-A-201 (Security Procedure) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.Y. Uniform Commercial Code § 4-A-201 (2026).

Text

* Section 4-A-201. Security Procedure.\n  "Security procedure" means a procedure established by agreement of a\ncustomer and a receiving bank for the purpose of (1) verifying that a\npayment order or communication amending or cancelling a payment order is\nthat of the customer, or (2) detecting error in the transmission or the\ncontent of the payment order or communication. A security procedure may\nrequire the use of algorithms or other codes, identifying words or\nnumbers, encryption, callback procedures, or similar security devices.\nComparison of a signature on a payment order or communication with an\nauthorized specimen signature of the customer is not by itself a\nsecurity procedure.\n  * NB Effective until June 3, 2026\n* Section 4-A-201. Security Procedure.\n  "Security procedure"

Free access — add to your briefcase to read the full text and ask questions with AI

* Section 4-A-201. Security Procedure.\n "Security procedure" means a procedure established by agreement of a\ncustomer and a receiving bank for the purpose of (1) verifying that a\npayment order or communication amending or cancelling a payment order is\nthat of the customer, or (2) detecting error in the transmission or the\ncontent of the payment order or communication. A security procedure may\nrequire the use of algorithms or other codes, identifying words or\nnumbers, encryption, callback procedures, or similar security devices.\nComparison of a signature on a payment order or communication with an\nauthorized specimen signature of the customer is not by itself a\nsecurity procedure.\n * NB Effective until June 3, 2026\n* Section 4-A-201. Security Procedure.\n "Security procedure" means a procedure established by agreement of a\ncustomer and a receiving bank for the purpose of (1) verifying that a\npayment order or communication amending or cancelling a payment order is\nthat of the customer, or (2) detecting error in the transmission or the\ncontent of the payment order or communication. A security procedure may\nimpose an obligation on the receiving bank or the customer and may\nrequire the use of algorithms or other codes, identifying words,\nnumbers, symbols, sounds, biometrics, encryption, callback procedures,\nor similar security devices. Comparison of a signature on a payment\norder or communication with an authorized specimen signature of the\ncustomer or requiring a payment order to be sent from a known email\naddress, IP address, or telephone number is not by itself a security\nprocedure.\n * NB Effective June 3, 2026\n