                                 CODE OF VIRGINIA

SECURITY PROCEDURE (§ 8.4A-201)

&#8220;Security procedure&#8221; 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 impose an obligation on
the receiving bank or the customer and may require the use of algorithms or
other codes, identifying words, numbers, symbols, sounds, biometrics,
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 or requiring a payment order to be sent from a known
email address, IP address, or telephone number is not by itself a security
procedure.

HISTORY: 1990, c. 9; 2024, c. 652.