reglab/statecodes huggingface dataset:
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.11 | Status of Collecting Bank as Agent and Provisional Status of Credits - Applicability of Article - Item Indorsed Pay Any Bank - Ucc 4-201.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
(A) Unless a contrary intent clearly appears and prior to the time that a settlement given by a collecting bank for an item is or becomes final, the bank with respect to the item is an agent or subagent of the owner of the item, and any settlement given for the item is provisional. This provision applies regardless of the form of indorsement or lack of indorsement and even though credit given for the item is subject to immediate withdrawal as of right or is in fact withdrawn. The continuance of ownership of an item by its owner and any rights of the owner to proceeds of the item are subject to rights of a collecting bank such as those resulting from outstanding advances on the item and rights of recoupment or setoff. If an item is handled by banks for purposes of presentment, payment, collection, or return, the relevant provisions of sections 1304.01 to 1304.40 of the Revised Code apply even though action of the parties clearly establishes that particular bank has purchased the item and is the owner of it.
(B) After an item has been indorsed with the words "pay any bank" or the like, only a bank may acquire the rights of a holder until one of the following occurs:
(1) The item has been returned to the customer initiating collection.
(2) The item has been specially indorsed by a bank to a person who is not a bank.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.12 | Responsibility for Collection or Return - When Action Timely - Ucc 4-202.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
(A) A collecting bank shall exercise ordinary care in doing all of the following:
(1) Presenting an item or sending it for presentment;
(2) Sending notice of dishonor or non-payment or returning an item other than a documentary draft to the bank's transferor after learning that the item has not been paid or accepted;
(3) Settling for an item when the bank receives final settlement;
(4) Notifying its transferor of any loss or delay in transit within a reasonable time after discovery of the loss or delay.
(B) A collecting bank exercises ordinary care under division (A) of this section by taking proper action before its midnight deadline following receipt of an item, notice, or settlement. Taking proper action within a reasonably longer time may constitute the exercise of ordinary care, but the bank has the burden of establishing timeliness.
(C) Subject to division (A)(1) of this section, a bank is not liable for the insolvency, neglect, misconduct, mistake, or default of another bank or person or for loss or destruction of an item in the possession of others or in transit.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.13 | Effect of Instructions - Ucc 4-203.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
Subject to Chapter 1303. of the Revised Code concerning conversion of instruments and restrictive indorsements, only a collecting bank's transferor can give instructions that affect the bank or constitute notice to it and a collecting bank is not liable to prior parties for any action taken pursuant to the instructions or in accordance with any agreement with its transferor.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.14 | Methods of Sending and Presenting - Sending Directly to Payor Bank - Ucc 4-204.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
(A) A collecting bank shall send items by a reasonably prompt method taking into consideration relevant instructions, the nature of the item, the number of those items on hand, the cost of collection involved, and the method generally used by it or others to present those items.
(B) A collecting bank may do any of the following:
(1) Send an item directly to the payor bank;
(2) Send an item to a non-bank payor if authorized by its transferer;
(3) Send an item other than documentary drafts to a non-bank payor, if authorized by federal reserve regulations or operating circular, clearing house rule, or the like.
(C) Presentment may be made by a presenting bank at a place where the payor bank or other payor has requested that presentment be made.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.15 | Depositary Bank Holder of Unindorsed Item - Ucc 4-205.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
If a customer delivers an item to a depositary bank for collection, both of the following apply:
(A) The depositary bank becomes a holder of the item at the time it receives the item for collection if the customer at the time of delivery was a holder of the item, whether or not the customer indorses the item, and, if the bank satisfies the other requirements of section 1303.32 of the Revised Code, it is a holder in due courses.
(B) The depositary bank warrants to collecting banks, the payor bank or other payor, and the drawer that the amount of the item was paid to the customer or deposited to the customer's account.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.17 | Transfer Warranties - Ucc 4-207.

Effective:
April 6, 2017
Latest Legislation:
House Bill 463 - 131st General Assembly
(A) A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants all of the following to the transferee and to any subsequent collecting bank:
(1) The warrantor is a person entitled to enforce the item.
(2) All signatures on the item are authentic and authorized.
(3) The item has not been altered.
(4) The item is not subject to a defense or claim in recoupment of any party that can be asserted against the warrantor.
(5) The warrantor has no knowledge of any insolvency proceeding commenced with respect to the maker, acceptor, or, in the case of an unaccepted draft, the drawer.
(6) With respect to a remotely created consumer item, the person on whose account the item is drawn authorized the issuance of the item in the amount for which the item is drawn.
(B) If an item is dishonored, a customer or collecting bank transferring the item and receiving settlement or other consideration is obliged to pay the amount due on the item according to the terms of the item at the time it was transferred or, if the transfer was of an incomplete item, according to its terms when completed pursuant to sections 1303.11 and 1303.50 of the Revised Code. The obligation of a transferor is owed to the transferee and to any subsequent collecting bank that takes the item in good faith. A transferor cannot disclaim its obligation under this division by an indorsement stating that it is made "without recourse" or otherwise disclaiming liability.
(C) A person to whom the warranties under division (A) of this section are made and who took the item in good faith may recover from the warrantor as damages for breach of warranty an amount equal to the loss suffered as a result of the breach, but not more than the amount of the item plus expenses and loss of interest incurred as a result of the breach.
(D) The warranties set forth in division (A) of this section cannot be disclaimed with respect to checks. Unless notice of a claim for breach of warranty is given to the warrantor within thirty days after the claimant has reason to know of the breach and the identity of the warrantor, the warrantor is discharged to the extent of any loss caused by the delay in giving notice of the claim.
(E) A cause of action for breach of warranty under this section accrues when the claimant has reason to know of the breach.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.19 | Encoding and Retention Warranties - Ucc 4-209.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
(A) A person who encodes information on or with respect to an item after issue warrants to any subsequent collecting bank and to the payor bank or other payor that the information is correctly encoded. If the customer of a depositary bank encodes, that bank also makes the warranty.
(B) A person who undertakes to retain an item pursuant to an agreement for electronic presentment warrants to any subsequent collecting bank and to the payor bank or other payor that retention and presentment of the item comply with the agreement. If a customer of a depositary bank undertakes to retain an item, that bank also makes this warranty.
(C) A person to whom warranties are made under this section and who took the item covered by the warranties in good faith may recover from the warrantor as damages for breach of warranty an amount equal to the loss suffered as a result of the breach, plus expenses and loss of interest incurred as a result of the breach.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.20 | Security Interest of Collecting Bank in Items, Accompanying Documents and Proceeds - Ucc 4-210.

Effective:
June 29, 2011
Latest Legislation:
House Bill 9 - 129th General Assembly
(A) A collecting bank has a security interest in an item and any accompanying documents or the proceeds of the item or documents in any of the following manners:
(1) In the case of an item deposited in an account, to the extent to which credit given for the item has been withdrawn or applied;
(2) In the case of an item for which it has given credit available for withdrawal as of right, to the extent of the credit given, whether or not the credit is drawn upon or there is a right of charge-back;
(3) If it makes an advance on or against the item.
(B) If credit given for several items received at one time or pursuant to a single agreement is withdrawn or applied in part, the security interest remains upon all the items, any accompanying documents, or the proceeds of either. For the purpose of this section, credits first given are first withdrawn.
(C) Receipt by a collecting bank of a final settlement for an item is a realization on its security interest in the item, accompanying documents, and proceeds. So long as the bank does not receive final settlement for the item or give up possession of the item or possession or control of the accompanying documents for purposes other than collection, the security interest continues to that extent and is subject to Chapter 1309. of the Revised Code, except for all of the following:
(1) No security agreement is necessary to make the security interest enforceable under division (B)(3)(a) of section 1309.203 of the Revised Code.
(2) No filing is required to perfect the security interest.
(3) The security interest has priority over conflicting perfected security interests in the item, accompanying documents, or proceeds.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.21 | When Bank Gives Value for Purposes of Holder in Due Course - Ucc 4-211.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
For the purposes of determining its status as a holder in due course, a bank has given value to the extent it has a security interest in an item if the bank otherwise complies with the requirements of section 1303.32 of the Revised Code on what constitutes a holder in due course.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.22 | Presentment by Notice of Item Not Payable By, Through, or at Bank - Liability of Drawer or Indorser - Ucc 4-212.

Effective:
April 6, 2017
Latest Legislation:
House Bill 463 - 131st General Assembly
(A) Unless otherwise instructed, a collecting bank may present an item not payable by, through, or at a bank by sending to the party to accept or pay a record providing notice that the bank holds the item for acceptance or payment. The notice must be sent in time to be received on or before the day when presentment is due and the bank must meet any requirement of the party to accept or pay under section 1303.61 of the Revised Code by the close of the bank's next banking day after it knows of the requirement.
(B) If presentment is made by notice and payment, acceptance, or request for compliance with a requirement under section 1303.61 of the Revised Code is received by the close of business on the day after maturity or in the case of demand items by the close of business on the third banking day after notice was sent, the presenting bank may treat the item as dishonored and charge any drawer or indorser by sending the drawer or indorser notice of the facts.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.23 | Medium and Time of Settlement by Bank - Ucc 4-213.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
(A) With respect to settlement by a bank, the medium and time of settlement may be prescribed by federal reserve regulations or circulars, clearing house rules, and similar rules and documents, or agreement. In the absence of prescription in that manner, both of the following apply:
(1) The medium of settlement is cash or credit to an account in a federal reserve bank of or specified by the person to receive settlement.
(2) The time of settlement is one of the following:
(a) With respect to tender of settlement by cash, a cashier's check, or teller's check, when the cash or check is sent or delivered;
(b) With respect to tender of settlement by credit in an account in a federal reserve bank, when the credit is made;
(c) With respect to tender of settlement by a credit or debit to an account in a bank, when the credit or debit is made or, in the case of tender of settlement by authority to charge in account, when the authority is sent or delivered;
(d) With respect to tender of settlement by a funds transfer, when payment is made pursuant to division (A) of section 1304.34 of the Revised Code to the person receiving settlement.
(B) If the tender of settlement is not by a medium authorized by division (A) of this section or the time of settlement is not fixed by division (A) of this section, no settlement occurs until the tender of settlement is accepted by the person receiving settlement.
(C) If settlement for an item is made by cashier's check or teller's check, both of the following apply:
(1) If the person receiving settlement, before its midnight deadline, presents or forwards the check for collection, settlement is final when the check is finally paid.
(2) If the person receiving settlement, before its midnight deadline, fails to present or forward the check for collection, settlement is final at the midnight deadline of the person receiving settlement.
(D) If settlement for an item is made by giving authority to charge the account of the bank giving settlement in the bank receiving settlement, settlement is final when the charge is made by the bank receiving settlement if there are funds available in the account for the amount of the item.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.24 | Right of Charge-Back or Refund - Liability of Collecting Bank - Return of Item - Ucc 4-214.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
(A) If a collecting bank has made provisional settlement with its customer for an item and fails by reason of dishonor, suspension of payments by a bank, or otherwise to receive settlement for the item which is or becomes final, the bank may revoke the settlement given by it, charge back the amount of any credit given for the item to its customer's account, or obtain refund from its customer whether or not it is able to return the items if by its midnight deadline or within a longer reasonable time after it learns the facts it returns the item or sends notification of the facts. If the return or notice is delayed beyond the bank's midnight deadline or a longer reasonable time after it learns the facts, the bank may revoke the settlement, charge back the credit, or obtain a refund from its customer, but it is liable for any loss resulting from the delay. These rights to revoke, charge-back, and obtain refund terminate if and when a settlement for the item received by the bank is or becomes final.
(B) A collecting bank returns an item when it is sent or delivered to the bank's customer or transferor or pursuant to its instructions.
(C) A depositary bank that is also the payor may charge-back the amount of an item to its customer's account or obtain refund in accordance with section 1304.27 of the Revised Code governing return of an item received by a payor bank for credit on its books.
(D) The right to charge-back is not affected by either of the following:
(1) Previous use of a credit given for the item;
(2) Failure by any bank to exercise ordinary care with respect to the item, but a bank so failing remains liable.
(E) A failure to charge-back or claim refund does not affect other rights of the bank against the customer or any other party.
(F) If credit is given in dollars as the equivalent of the value of an item payable in a foreign money, the dollar amount of any charge-back or refund shall be calculated on the basis of the bank offered spot rate for the foreign money prevailing on the day when the person entitled to the charge-back or refund learns that it will not receive payment in ordinary course.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.25 | Final Payment of Item by Payor Bank - When Provisional Debits and Credits Become Final - When Certain Credits Become Available for Withdrawal - Ucc 4-215.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
(A) An item is finally paid by a payor bank when the bank has done any of the following:
(1) Paid the item in cash;
(2) Settled for the item without having a right to revoke the settlement under statute, clearing house rule, or agreement;
(3) Made a provisional settlement for the item and failed to revoke the settlement in the time and manner permitted by statute, clearing house rule, or agreement.
(B) If a provisional settlement for an item does not become final, the item is not finally paid.
(C) If provisional settlement for an item between the presenting and payor banks is made through a clearing house or by debits or credits in an account between them, then to the extent that provisional debits or credits for the item are entered in accounts between the presenting and payor banks or between the presenting and successive prior collecting banks seriatim, they become final upon final payment of the item by the payor bank.
(D) If a collecting bank receives a settlement for an item that is or becomes final, the bank is accountable to its customer for the amount of the item and any provisional credit given for the item in an account with its customer becomes final.
(E) Subject to applicable law stating a time for availability of funds and any right of the bank to apply the credit to an obligation of the customer, credit given by a bank for an item in a customer's account becomes available for withdrawal as of right at either of the following times:
(1) If the bank has received a provisional settlement for the item, when the settlement becomes final and the bank has had a reasonable time to receive return of the item and the item has not been received within that time;
(2) If the bank is both the depositary bank and the payor bank and the item is finally paid, at the opening of the bank's second banking day following receipt of the item.
(F) Subject to applicable law stating a time for availability of funds and any right of a bank to apply a deposit to an obligation of the depositor, a deposit of money becomes available for withdrawal as of right at the opening of the bank's next banking day after receipt of the deposit.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.26 | Insolvency and Preference - Ucc 4-216.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
(A) If an item is in or comes into the possession of a payor or collecting bank that suspends payment and the item has not been finally paid, the receiver, trustee, or agent in charge of the closed bank shall return the item to the presenting bank or the closed bank's customer.
(B) If a payor bank finally pays an item and suspends payments without making a settlement for the item with its customer or the presenting bank which settlement is or becomes final, the owner of the item has a preferred claim against the payor bank.
(C) If a payor bank gives or a collecting bank gives or receives a provisional settlement for an item and after the provisional settlement suspends payments, the suspension does not prevent or interfere with the settlement becoming final if the finality occurs automatically upon the lapse of certain time or the happening of certain events.
(D) If a collecting bank receives from subsequent parties settlement for an item which settlement is or becomes final and the bank suspends payments without making a settlement for the item with its customer which settlement is or becomes final, the owner of the item has a preferred claim against the collecting bank.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.27 | Deferred Posting - Recovery of Payment by Return of Items - Time of Dishonor - Return of Items by Payor Bank - Ucc 4-301.

Effective:
April 6, 2017
Latest Legislation:
House Bill 463 - 131st General Assembly
(A) If a payor bank settles for a demand item other than a documentary draft presented otherwise than for immediate payment over the counter before midnight of the banking day of receipt, the payor bank may revoke the settlement and recover the settlement if before it has made final payment and before its midnight deadline it does any of the following:
(1) It returns the item.
(2) It returns an image of the item, if the party to which the return is made has entered into an agreement to accept an image as a return of the item and the image is returned in accordance with that agreement.
(3) It sends a record providing notice of dishonor or nonpayment if the item is unavailable for return.
(B) If a demand item is received by a payor bank for credit on its books, it may return the item or send notice of dishonor and may revoke any credit given or recover the amount of any credit withdrawn by its customer, if it acts within the time limit and in the manner specified in division (A) of this section.
(C) Unless previous notice of dishonor has been sent, an item is dishonored at the time when for purposes of dishonor it is returned or notice sent in accordance with this section.
(D) An item is returned at either of the following times:
(1) As to an item presented through a clearing house, when it is delivered to the presenting or last collecting bank or to the clearing house or is sent or delivered in accordance with its rules;
(2) In all other cases, when it is sent or delivered to the bank's customer or transferor or pursuant to the customer's or transferor's instructions.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.28 | Payor Bank's Responsibility for Late Return of Item - Ucc 4-302.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
(A) If an item is presented to and received by a payor bank, the bank is accountable for either of the following:
(1) The amount of a demand item other than a documentary draft whether properly payable or not if the bank, in any case in which it is not also the depository bank, retains the item beyond midnight of the banking day of receipt without settling for it or, regardless of whether or not it is also the depository bank, does not pay or return the item or send notice of dishonor until after its midnight deadline;
(2) The amount of any other properly payable item unless within the time allowed for acceptance or payment of that item the bank either accepts or pays the item or returns it and accompanying documents.
(B) The liability of a payor bank to pay an item pursuant to division (A) of this section is subject to defenses based on breach of a presentment warranty or proof that the person seeking enforcement of the liability presented or transferred the item for the purpose of defrauding the payor bank.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.29 | When Items Subject to Notice, Stop-Payment Order, Legal Process or Setoff - Order in Which Items May Be Charged or Certified - Ucc 4-303.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
(A) Any knowledge, notice, or stop payment order received by, legal process served upon or setoff exercised by a payor bank comes too late to terminate, suspend, or modify the bank's right or duty to pay an item or to charge its customer's account for the item if the knowledge, notice, stop payment order, or legal process is received or served and a reasonable time for the bank to act on that knowledge, notice, order, or process expires or the setoff is exercised after the earliest of the following:
(1) The bank accepts or deposits the item.
(2) The bank pays the item in cash.
(3) The bank settles for the item without having a right to revoke the settlement under statute, clearing house rule, or agreement.
(4) The bank becomes accountable for the amount of the item under division (A)(3) of section 1304.25 and section 1304.28 of the Revised Code dealing with the payor bank's responsibility for late return of items.
(5) With respect to checks, a cut off hour no earlier than one hour after the opening of the next banking day on which the bank received the check and no later than the close of that next banking day or, if no cut off hour is fixed, the close of the next banking day on which the bank received the check.
(B) Subject to division (A) of this section, items may be accepted, paid, certified, or charged to the indicated account of its customer in any order.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.30 | When Bank May Charge Customer's Account - Ucc 4-401.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
(A) A bank may charge against the account of a customer an item that is properly payable from that account even though the charge creates an overdraft. An item is properly payable if it is authorized by the customer and is in accordance with any agreement between the customer and bank.
(B) A customer is not liable for the amount of an overdraft if the customer neither signed the item nor benefited from the proceeds of the item.
(C) A bank may charge against the account of a customer a check that is otherwise properly payable from the account, even though the payment was made before the date of the check, unless the customer has given notice to the bank of the postdating and describes the check with reasonable certainty. The notice is effective for the period stated in division (B) of section 1304.32 of the Revised Code for stop payment orders and must be received at a time and in a manner that affords the bank a reasonable opportunity to act on it before the bank takes any action with respect to the check described in section 1304.29 of the Revised Code. If a bank charges against the account of a customer a check before the date stated in the notice of postdating, the bank is liable for damages for the loss resulting from its act. The loss may include damages for dishonor of subsequent items under section 1304.31 of the Revised Code.
(D) A bank that in good faith makes payment to a holder may charge the indicated account of its customer according to either of the following:
(1) Original terms of the altered item;
(2) The terms of the completed item, even though the bank knows the item has been completed unless the bank has notice that the completion was improper.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.31 | Bank's Liability to Customer for Wrongful Dishonor - Time of Determining Insufficiency of Account - Ucc 4-402.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
(A) Except as otherwise provided in sections 1304.01 to 1304.40 of the Revised Code, a payor bank wrongfully dishonors an item if it dishonors an item that is properly payable, but a bank may dishonor an item that would create an overdraft unless it has agreed to pay the overdraft.
(B) A payor bank is liable to its customer for damages proximately caused by the wrongful dishonor of an item. Liability is limited to actual damages proved and damages may include damages for an arrest or prosecution of the customer or other consequential damages. Whether any consequential damages are proximately caused by the wrongful dishonor is a question of fact to be determined in each case.
(C) A payor bank's determination of the customer's account balance on which a decision to dishonor for insufficiency of available funds is based may be made at any time between the time the item is received by the payor bank and the time that the payor bank returns the item or gives notice in lieu of return, and no more than one determination need be made. If, at the election of the payor bank, a subsequent balance determination is made for the purpose of reevaluating the bank's decision to dishonor the item, the account balance at that time is determinative of whether a dishonor for insufficiency of available funds is wrongful.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.32 | Customer's Right to Stop Payment - Burden of Proof of Loss - Ucc 4-403.

Effective:
April 6, 2017
Latest Legislation:
House Bill 463 - 131st General Assembly
(A) A customer, or any person authorized to draw on the account if there is more than one person, may stop payment of any item drawn on the customer's account or close the account by an order to the bank describing the item or account with reasonable certainty received at a time and in a manner that affords the bank a reasonable opportunity to act on it before any action by the bank with respect to the item described in section 1304.29 of the Revised Code. If the signature of more than one person is required to draw on an account, any of these persons may stop payment or close the account.
(B) A stop payment order is effective for six months, but it lapses after fourteen calendar days if the original order was oral and was not confirmed in a record within that period. A stop payment order may be renewed for additional six- month periods by a record given to the bank within a period during which the stop payment order is effective.
(C) The burden of establishing the fact and amount of loss resulting from the payment of an item contrary to a stop payment order or order to close an account is on the customer. The loss from payment of an item contrary to a stop payment order may include damages for dishonor of subsequent items under section 1304.31 of the Revised Code.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.33 | Bank Not Obliged to Pay Check More Than Six Months Old - Ucc 4-404.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
A bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, that is presented more than six months after its date, but it may charge its customer's account for a payment made in good faith after its date.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.34 | Death or Incompetence of Customer - Ucc 4-405.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
(A) A payor or collecting bank's authority to accept, pay, or collect an item or to account for proceeds of its collection if otherwise effective is not rendered ineffective by incompetence of a customer of either bank existing at the time the item is issued or its collection is undertaken if the bank does not know of an adjudication of incompetence. Neither death nor incompetence of a customer revokes the authority to accept, pay, collect, or account until the bank knows of the fact of death or of an adjudication of incompetence and has reasonable opportunity to act on it.
(B) Even with knowledge, a bank may for ten days after the date of death pay or certify checks drawn on or before that date unless ordered to stop payment by a person claiming an interest in the account.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.36 | Payor Bank's Right to Subrogation on Improper Payment - Ucc 4-407.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
If a payor bank has paid an item over the order of the drawer or maker to stop payment, after an account has been closed, or otherwise under circumstances giving a basis for objection by the drawer or maker, to prevent unjust enrichment and only to the extent necessary to prevent loss to the bank by reason of its payment of the item, the payor bank is subrogated to the rights of all of the following:
(A) Any holder in due course on the item against the drawer or maker;
(B) The payee or any other holder of the item against the drawer or maker either on the item or under the transaction out of which the item arose;
(C) The drawer or maker against the payee or any other holder of the item with respect to the transaction out of which the item arose.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.37 | Handling of Documentary Drafts - Duty to Send for Presentment and to Notify Customer of Dishonor - Ucc 4-501.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
A bank that takes a documenatary draft for collection shall present or send the draft and accompanying documents for presentment and upon learning that the draft has not been paid or accepted in due course shall seasonably notify its customer of the fact even though it may have discounted or bought the draft or extended credit available for withdrawal as of right.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.38 | Presentment of on Arrival Drafts - Ucc 4-502.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
If a draft or the relevant instructions require presentment "on arrival," "when goods arrive," or at a similar time related to the arrival of goods, the collecting bank need not present until in its judgment a reasonable time for arrival of the goods has expired. Refusal to pay or accept because the goods have not arrived is not dishonor. The bank shall notify its transferor of the refusal but is not required to present the draft again until it is instructed to do so or learns of the arrival of the goods.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.39 | Responsibility of Presenting Bank for Documents and Goods - Report of Reasons for Dishonor - Referee in Case of Need - Ucc 4-503.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
Unless otherwise instructed and except as provided in sections 1305.01 to 1305.16 of the Revised Code, both of the following apply to a bank presenting a documentary draft:
(A) The bank must deliver the documents to the drawee on acceptance of the draft if it is payable more than three days after presentment or only on payment if it is not payable more than three days after presentment.
(B) Upon dishonor, either in the case of presentment for acceptance or presentment for payment, the bank may seek and follow instructions from any referee in case of need designated in the draft or, if the presenting bank does not choose to utilize the referee's services, it shall use diligence and good faith to ascertain the reason for dishonor, shall notify its transferor of the dishonor and of the results of its effort to ascertain the reasons for the dishonor, and shall request instructions. However, the presenting bank is under no obligation with respect to goods represented by the documents except to follow any reasonable instructions seasonably received. It has a right to reimbursement for any expense incurred in following instructions and to prepayment of or indemnity for those expenses.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.40 | Privilege of Presenting Bank to Deal With Goods - Security Interest for Expenses - Ucc 4-504.

Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
(A) A presenting bank that, following the dishonor of a documentary draft, has seasonably requested instructions but does not receive them within a reasonable time may store, sell, or otherwise deal with the goods in any reasonable manner.
(B) For its reasonable expenses incurred by action under division (A) of this section, the presenting bank has a lien upon the goods or their proceeds, which may be foreclosed in the same manner as an unpaid seller's lien.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.52 | Application of Provisions - Ucc 4a-102.

Effective:
October 23, 1991
Latest Legislation:
House Bill 221 - 119th General Assembly
Except as otherwise provided in section 1304.55 of the Revised Code, sections 1304.51 to 1304.85 of the Revised Code apply to funds transfers as defined in section 1304.51 of the Revised Code.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.53 | Time Payment Order Is Received - Ucc 4a-106.

Effective:
June 29, 2011
Latest Legislation:
House Bill 9 - 129th General Assembly
(A) The time of receipt of a payment order or communication canceling or amending a payment order is determined by the rules applicable to receipt of a notice as provided in section 1301.202 of the Revised Code. A receiving bank may fix a cut-off time or times on a funds-transfer business day for the receipt and processing of payment orders and communications canceling or amending payment orders. Different cut-off times may apply to payment orders, cancellations, or amendments, or to different categories of payment orders, cancellations, or amendments. A cut-off time may apply to senders generally or different cut-off times may apply to different senders or categories of payment orders. If a payment order or communication canceling or amending a payment order is received after the close of a funds-transfer business day or after the appropriate cut-off time on a funds-transfer business day, the receiving bank may treat the payment order or communication as received at the opening of the next funds-transfer business day.
(B) If sections 1304.51 to 1304.85 of the Revised Code refer to an execution date or payment date or state a day on which a receiving bank is required to take action, and the date or day does not fall on a funds-transfer business day, the next day that is a funds-transfer business day is treated as the date or day stated, unless the contrary is stated in these sections.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.54 | Federal Reserve Regulations and Operating Circulars - Ucc 4a-107.

Effective:
October 23, 1991
Latest Legislation:
House Bill 221 - 119th General Assembly
Regulations of the board of governors of the federal reserve system and operating circulars of the federal reserve banks supersede any inconsistent provision of sections 1304.51 to 1304.85 of the Revised Code to the extent of the inconsistency.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.55 | Applicability of Orc Provisions for Consumer Transactions Governed by Federal Law - Ucc 4a-108.

Effective:
March 22, 2013
Latest Legislation:
Senate Bill 333 - 129th General Assembly
(A) Except as otherwise provided in division (B) of this section, sections 1304.51 to 1304.85 of the Revised Code do not apply to a funds transfer any part of which is governed by the "Electronic Fund Transfer Act," 92 Stat. 3728 (1978), 15 U.S.C.A. 1693, as amended.
(B) Sections 1304.51 to 1304.85 of the Revised Code apply to a remittance transfer as defined in the "Electronic Fund Transfer Act," 124 Stat. 2065 (2010), 15 U.S.C. 1693o-1, as amended, unless the remittance transfer is an electronic fund transfer as defined in the "Electronic Fund Transfer Act," 92 Stat. 3728 (1978), 15 U.S.C. 1693a, as amended.
(C) In a funds transfer to which sections 1304.51 to 1304.85 of the Revised Code apply, in the event of an inconsistency between an applicable provision of sections 1304.51 to 1304.85 of the Revised Code and an applicable provision of the "Electronic Fund Transfer Act," 92 Stat. 3728 (1978), 15 U.S.C. 1693, as amended, the provisions of the Electronic Fund Transfer Act govern to the extent of the inconsistency.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.56 | Security Procedure - Ucc 4a-201.

Effective:
October 23, 1991
Latest Legislation:
House Bill 221 - 119th General Assembly
"Security procedure" means a procedure established by agreement of a customer and a receiving bank for the purpose of verifying that a payment order or communication amending or cancelling 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.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.57 | Authorized and Verified Payment Orders - Ucc 4a-202.

Effective:
October 23, 1991
Latest Legislation:
House Bill 221 - 119th General Assembly
(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)(1) 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 both of the following apply:
(a) The security procedure is a commercially reasonable method of providing security against unauthorized payment orders.
(b) The bank proves that it accepted the payment order in good faith and in compliance with the security procedure and any written agreement or instruction of the customer restricting acceptance of payment orders issued in the name of the customer.
(2) The bank is not required to follow an instruction that violates a written agreement with the customer 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)(1) Commercial reasonableness of a security procedure is a question of law to be determined by considering all of the following:
(a) The wishes of the customer expressed to the bank;
(b) 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;
(c) Alternative security procedures offered to the customer;
(d) Security procedures in general use by customers and receiving banks similarly situated.
(2) A security procedure is deemed to be commercially reasonable if both of the following apply:
(a) 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.
(b) The customer expressly agreed in writing to be bound by any payment order, whether or not authorized, issued in its name and accepted by the bank in compliance with the security procedure chosen by the customer.
(D) As used in sections 1304.51 to 1304.85 of the Revised Code, "sender" includes the customer in whose name a payment order is issued if the order is the authorized order of the customer under division (A) of this section, or is effective as the order of the customer under division (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 division (A)(1) of section 1304.58 of the Revised Code, rights and obligations arising under this section or section 1304.58 of the Revised Code may not be varied by agreement.
2023 Ohio Revised Code › Title 13 | Commercial Transactions › Chapter 1304 | Bank Deposits and Collections › Section 1304.58 | Unenforceability of Certain Verified Payment Orders - Ucc 4a-203.

Effective:
October 23, 1991
Latest Legislation:
House Bill 221 - 119th General Assembly
(A) If an accepted payment order is not an authorized order of a customer identified as sender under division (A) of section 1304.57 of the Revised Code, but is effective as an order of the customer under division (B) of that section, both of the following apply:
(1) By express written agreement, the receiving bank may limit the extent to which it is entitled to enforce or retain payment of the payment order.
(2) The receiving bank may not enforce or retain payment of the payment order if the customer proves that the order was not caused, directly or indirectly, by either of the following:
(a) A person entrusted at any time with duties to act for the customer with respect to payment orders or the security procedure;
(b) A person who obtained access to transmitting facilities of the customer or who obtained, from a source controlled by the customer and without authority of the receiving bank, information facilitating breach of the security procedure, regardless of how the information was obtained or whether the customer was at fault. As used in division (A)(2)(b) of this section, "information" includes any access device, computer software, or the like.
(B) This section applies to amendments of payment orders to the same extent it applies to payment orders.