Tex. Business & Commerce Code § 4A.201
SECURITY PROCEDURE
Texas · Texas Business & Commerce Code · Status: effective
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- Citation
- Tex. Business & Commerce Code § 4A.201, SECURITY PROCEDURE, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/630065
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Full text
"Security procedure" means a procedure established by an agreement between 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.