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. […]

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 […]

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 […]

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 […]

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 […]

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 […]

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, […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

Section 1304.35 | Customer’s Duty to Discover and Report Unauthorized Signature or Alteration – Ucc 4-406.

Effective: April 6, 2017 Latest Legislation: House Bill 463 – 131st General Assembly (A) A bank that sends or makes available to a customer a statement of account showing payment of items for the account shall either return or make available to the customer the items paid or provide information in the statement of account […]

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 […]

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 […]

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 […]

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 […]

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 […]

Section 1304.51 | Definitions – Ucc 4a-103, 4a-104, 4a-105.

Effective: June 29, 2011 Latest Legislation: House Bill 9 – 129th General Assembly (A) As used in sections 1304.51 to 1304.85 of the Revised Code: (1) “Authorized account” means a deposit account of a customer in a bank designated by the customer as a source of payment of payment orders issued by the customer to […]