355.4A -201 Security procedure. (1) 'Security procedure' means a procedure established by agreement of a customer and a receiving bank for the purpose of: (a) Verifying that a payment order or communication amending or canceling a payment order is that of the customer; or (b) Detecting error in the transmission or the content of the payment order or communication. (2) A security procedure may: (a) Impose an obligation on the receiving bank or the customer; and (b) Require the use of algorithms or other codes, identifying words, numbers, symbo ls, sounds, biometrics, encryption, callback procedures, or similar security devices. (3) Comparison of a signature on a payment order or communication with an authorized specimen signature of the customer or requiring a payment order to be sent from a kno wn email address, IP address, or phone number is not by itself a security procedure. Effective: January 1, 2025 History: Amended 2024 Ky. Acts ch. 10, sec. 27, effective January 1, 2025. -- Created 1992 Ky. Acts ch. 116, sec. 32, effective July 14, 1992.
Kentucky Legal Code