(1) 'Security procedure' means a procedure established by agreement of a customer and a receiving bank for the purpose of:\n(a) Verifying that a payment order or communication amending or canceling a payment order is that of the customer; or\n(b) Detecting error in the transmission or the content of the payment order or communication.\n(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. [1991 c.442 §9]
Oregon Legal Code