(810 ILCS 5/4A-201) (from Ch. 26, par. 4A-201)
Sec. 4A-201.
Security procedure.
"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.
(Source: P.A. 86-1291.)
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