Telephone Confirmation (Callback Clause Samples
The Telephone Confirmation (Callback) clause requires parties to verify certain communications or instructions by making a follow-up phone call to a designated contact. In practice, this means that before acting on sensitive requests—such as changes to payment instructions or authorizations—one party must call the other using a pre-agreed telephone number to confirm the legitimacy of the request. This clause helps prevent fraud and unauthorized actions by ensuring that critical instructions are double-checked through a secure, direct communication channel.
Telephone Confirmation (Callback. Telephone confirmation will be used to verify all non-repetitive funds transfer instructions received via untested facsimile or phone. This procedure requires Clients to designate individuals as authorized initiators and authorized verifiers. State Street will verify that the instruction contains the signature of an authorized person and prior to execution, will contact someone other than the originator at the Client’s location to authenticate the instruction. Selection of this alternative is appropriate for Clients who do not have the capability to use other security procedures.