Section 703. Commercial reasonableness.
The efficacy and commercial reasonableness of a security procedure is to be determined by the court. In making this determination, the following rules apply:
(1) A security procedure established by statute or regulation is effective for transactions covered by the statute or regulation.
(2) Except as otherwise provided in paragraph (1), commercial reasonableness and effectiveness is determined in light of the purposes of the security procedure and the commercial circumstances at the time the parties agree to or adopt the procedure.