'Security procedure' means a procedure established by agreement of a customer and a receiving bank for the purpose of:(i) Verifying that a payment order or communication amending or cancelling a payment order is that of the customer; or(ii) Detecting error in the transmission or the content of the payment order or communication.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.Acts 1991, ch. 52, § 1.
Tennessee Legal Code