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KRS 355.4A-201

Security procedure

Known as the Uniform Commercial Code

The act spans §§ 355.10-101 to 355.9-809 (686 sections).

Effective: January 1, 2025 History: Amended 2024 Ky

(1) "Security procedure" means a procedure established by agreement of a customer and a receiving bank for the purpose of:

(a) Verifying that a payment order or communication amending or canceling a payment order is that of the customer; or (b) Detecting error in the transmission or the content of the payment order or communication.

(2) A security procedure may:

(a) Impose an obligation on the receiving bank or the customer; and (b) Require the use of algorithms or other codes, identifying words, numbers, symbols, sounds, biometrics, encryption, callback procedures, or similar security devices.

(3) Comparison of a signature on a payment order or communication with an authorized specimen signature of the customer or requiring a payment order to be sent from a known email address, IP address, or phone number is not by itself a security procedure.

Official source: Kentucky General Assembly. Reproduced from public-domain Kentucky statutes; confirm against the official source for the current text. Not legal advice.