Can you summarize IACO 554.12201?

Short Summary

Security procedure means a procedure established by agreement between a customer and a receiving bank for the purpose of verifying that a payment order or communication amending or canceling a payment order is that of the customer, or 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. 92 Acts, ch 1146, 9 Referred to in 554.12105

Jurisdiction

Iowa

Source

• Banking