Nevada Commercial Instruments and Transactions

Sec. § 104A.4201
Security procedure.


“Security procedure” means a procedure established by agreement of a customer and a receiving bank to:


Verify that a payment order or communication amending or cancelling a payment order is that of the customer; or


Detect 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.

Last accessed
Feb. 5, 2021