Vermont § 202 - § 4A—202.

§ 202. § 4A—202.

• Authorized and verified payment orders. (a) A payment order received by the receiving bank is the authorized order of the person
  identified as sender if that person authorized the order or is otherwise bound by
  it under the law of agency. (b) If a bank and its customer have agreed that the authenticity of payment orders issued
  to the bank in the name of the customer as sender will be verified pursuant to a security
  procedure, a payment order received by the receiving bank is effective as the order
  of the customer, whether or not authorized, if (i) the security procedure is a commercially
  reasonable method of providing security against unauthorized payment orders, and (ii)
  the bank proves that it accepted the payment order in good faith and in compliance
  with the bank’s obligations under the security procedure and any agreement or instruction
  of the customer, evidenced by a record, restricting acceptance of payment orders issued
  in the name of the customer. The bank is not required to follow an instruction that
  violates an agreement with the customer, evidenced by a record, or notice of which
  is not received at a time and in a manner affording the bank a reasonable opportunity
  to act on it before the payment order is accepted. (c) Commercial reasonableness of a security procedure is a question of law to be determined
  by considering the wishes of the customer expressed to the bank, the circumstances
  of the customer known to the bank, including the size, type, and frequency of payment
  orders normally issued by the customer to the bank, alternative security procedures
  offered to the customer, and security procedures in general use by customers and receiving
  banks similarly situated. A security procedure is deemed to be commercially reasonable
  if (i) the security procedure was chosen by the customer after the bank offered, and
  the customer refused, a security procedure that was commercially reasonable for that
  customer, and (ii) the customer expressly agreed in a record to be bound by any payment
  order, whether or not authorized, issued in its name and accepted by the bank in compliance
  with the bank’s obligations under the security procedure chosen by the customer. (d) The term “sender” in this article includes the customer in whose name a payment order
  is issued if the order is the authorized order of the customer under subsection (a)
  of this section, or it is effective as the order of the customer under subsection
  (b) of this section. (e) This section applies to amendments and cancellations of payment orders to the same
  extent it applies to payment orders. (f) Except as provided in this section and in subdivision 4A—203(a)(1) of this title, rights and obligations arising under this section or section 4A—203 of this title may not be varied by agreement. (Added 1993, No. 158 (Adj. Sess.), § 14, eff. Jan. 1, 1995; amended 2025, No. 17, § 5, eff. July 1, 2025.)