KRS 355.4A-201: Security procedure.

(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 kno wn email address, IP address, or phone number is not by itself a

security procedure.