Utah Statutes

§ 70A-4a-201 — Security procedure.

Utah·Title 70A Uniform Commercial Code·Ch. 70A-4a Uniform Commercial Code - Funds Transfers·Part 70A-4a-2 Issuance and Acceptance of Payment Order
(1)"Security procedure" means a procedure established by agreement of a customer and a receiving bank for the purpose of:
(1)(a) verifying that a payment order or communication amending or canceling a payment order is that of the customer; or
(1)(b) detecting error in the transmission or the content of the payment order or communication.
(2)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.

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Legislative History

Enacted by Chapter 294, 1990 General Session

Nearby Sections

15
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