Ohio Revised Code Chapter 1304 - Bank Deposits And Collections

• Section 1304.01 - Definitions - Ucc 4-104, 4-105.
  (A) As used in sections 1304.01 to 1304.40 of the Revised Code, unless the context requires otherwise: (1) "Account" means any deposit or credit...
• Section 1304.02 - Applicability - Ucc 4-102.
  (A) To the extent that items within sections 1304.01 to 1304.40 of the Revised Code are also within the scope of Chapter 1303. and...
• Section 1304.03 - Variation By Agreement - Measure Of Damages - Action Constituting Ordinary Care - Ucc 4-103.
  (A) The effect of the provisions of this chapter may be varied by agreement, but the parties to the agreement cannot disclaim a bank's...
• Section 1304.04 - Separate Office Of Bank - Ucc 4-107.
  A branch or separate office of a bank is a separate bank for the purpose of computing the time within which and determining the...
• Section 1304.05 - Payable Through Or Payable At Bank - Ucc 4-106.
  (A) If an item states that it is "payable through" a bank identified in the item, both of the following apply: (1) The item...
• Section 1304.06 - Time Of Receipt Of Items - Ucc 4-108.
  (A) For the purpose of allowing time to process items, prove balances, and make the necessary entries on its books to determine its position...
• Section 1304.07 - Delays - Ucc 4-109.
  (A) Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specific item drawn on a payor other...
• Section 1304.08 - Electronic Presentment - Ucc 4-110.
  (A) "Agreement for electronic presentment" means an agreement, clearing house rule, or federal reserve regulation or operating circular providing that presentment of an item...
• Section 1304.09 - Statute Of Limitations - Ucc 4-111.
  An action to enforce an obligation, duty, or right arising under sections 1304.01 to 1304.40 of the Revised Code shall be brought within three...
• Section 1304.10 - Amended And Renumbered Rc 1304.14.
  Effective Date: 08-19-1994
• 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.
  (A) Unless a contrary intent clearly appears and prior to the time that a settlement given by a collecting bank for an item is...
• Section 1304.12 - Responsibility For Collection Or Return - When Action Timely - Ucc 4-202.
  (A) A collecting bank shall exercise ordinary care in doing all of the following: (1) Presenting an item or sending it for presentment; (2)...
• Section 1304.13 - Effect Of Instructions - Ucc 4-203.
  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...
• Section 1304.14 - Methods Of Sending And Presenting - Sending Directly To Payor Bank - Ucc 4-204.
  (A) A collecting bank shall send items by a reasonably prompt method taking into consideration relevant instructions, the nature of the item, the number...
• Section 1304.15 - Depositary Bank Holder Of Unindorsed Item - Ucc 4-205.
  If a customer delivers an item to a depositary bank for collection, both of the following apply: (A) The depositary bank becomes a holder...
• Section 1304.16 - Transfer Between Banks - Ucc 4-206.
  Any agreed method that identifies the transferor bank is sufficient for the item's further transfer to another bank. Effective Date: 08-19-1994
• Section 1304.17 - Transfer Warranties - Ucc 4-207.
  (A) A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants all of the following to the...
• Section 1304.18 - Presentment Warranties - Ucc 4-208.
  (A) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, the person...
• Section 1304.19 - Encoding And Retention Warranties - Ucc 4-209.
  (A) A person who encodes information on or with respect to an item after issue warrants to any subsequent collecting bank and to the...
• Section 1304.20 - Security Interest Of Collecting Bank In Items, Accompanying Documents And Proceeds - Ucc 4-210.
  (A) A collecting bank has a security interest in an item and any accompanying documents or the proceeds of the item or documents in...
• Section 1304.21 - When Bank Gives Value For Purposes Of Holder In Due Course - Ucc 4-211.
  For the purposes of determining its status as a holder in due course, a bank has given value to the extent it has a...
• Section 1304.22 - Presentment By Notice Of Item Not Payable By, Through, Or At Bank - Liability Of Drawer Or Indorser - Ucc 4-212.
  (A) Unless otherwise instructed, a collecting bank may present an item not payable by, through, or at a bank by sending to the party...
• Section 1304.23 - Medium And Time Of Settlement By Bank - Ucc 4-213.
  (A) With respect to settlement by a bank, the medium and time of settlement may be prescribed by federal reserve regulations or circulars, clearing...
• Section 1304.24 - Right Of Charge-back Or Refund - Liability Of Collecting Bank - Return Of Item - Ucc 4-214.
  (A) If a collecting bank has made provisional settlement with its customer for an item and fails by reason of dishonor, suspension of payments...
• 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.
  (A) An item is finally paid by a payor bank when the bank has done any of the following: (1) Paid the item in...
• Section 1304.26 - Insolvency And Preference - Ucc 4-216.
  (A) If an item is in or comes into the possession of a payor or collecting bank that suspends payment and the item has...
• Section 1304.27 - Deferred Posting - Recovery Of Payment By Return Of Items - Time Of Dishonor - Return Of Items By Payor Bank - Ucc 4-301.
  (A) If a payor bank settles for a demand item other than a documentary draft presented otherwise than for immediate payment over the counter...
• Section 1304.28 - Payor Bank's Responsibility For Late Return Of Item - Ucc 4-302.
  (A) If an item is presented to and received by a payor bank, the bank is accountable for either of the following: (1) The...
• 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.
  (A) Any knowledge, notice, or stop payment order received by, legal process served upon or setoff exercised by a payor bank comes too late...
• Section 1304.30 - When Bank May Charge Customer's Account - Ucc 4-401.
  (A) A bank may charge against the account of a customer an item that is properly payable from that account even though the charge...
• Section 1304.31 - Bank's Liability To Customer For Wrongful Dishonor - Time Of Determining Insufficiency Of Account - Ucc 4-402.
  (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...
• Section 1304.32 - Customer's Right To Stop Payment - Burden Of Proof Of Loss - Ucc 4-403.
  (A) A customer, or any person authorized to draw on the account if there is more than one person, may stop payment of any...
• Section 1304.33 - Bank Not Obliged To Pay Check More Than Six Months Old - Ucc 4-404.
  A bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, that is...
• Section 1304.34 - Death Or Incompetence Of Customer - Ucc 4-405.
  (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...
• Section 1304.35 - Customer's Duty To Discover And Report Unauthorized Signature Or Alteration - Ucc 4-406.
  (A) A bank that sends or makes available to a customer a statement of account showing payment of items for the account shall either...
• Section 1304.36 - Payor Bank's Right To Subrogation On Improper Payment - Ucc 4-407.
  If a payor bank has paid an item over the order of the drawer or maker to stop payment, after an account has been...
• Section 1304.37 - Handling Of Documentary Drafts - Duty To Send For Presentment And To Notify Customer Of Dishonor - Ucc 4-501.
  A bank that takes a documentary draft for collection shall present or send the draft and accompanying documents for presentment and upon learning that...
• Section 1304.38 - Presentment Of On Arrival Drafts - Ucc 4-502.
  If a draft or the relevant instructions require presentment "on arrival," "when goods arrive," or at a similar time related to the arrival of...
• Section 1304.39 - Responsibility Of Presenting Bank For Documents And Goods - Report Of Reasons For Dishonor - Referee In Case Of Need - Ucc 4-503.
  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...
• Section 1304.40 - Privilege Of Presenting Bank To Deal With Goods - Security Interest For Expenses - Ucc 4-504.
  (A) A presenting bank that, following the dishonor of a documentary draft, has seasonably requested instructions but does not receive them within a reasonable...
• Section 1304.51 - Definitions - Ucc 4a-103, 4a-104, 4a-105.
  (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...
• Section 1304.52 - Application Of Provisions - Ucc 4a-102.
  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...
• Section 1304.53 - Time Payment Order Is Received - Ucc 4a-106.
  (A) The time of receipt of a payment order or communication canceling or amending a payment order is determined by the rules applicable to...
• Section 1304.54 - Federal Reserve Regulations And Operating Circulars - Ucc 4a-107.
  Regulations of the board of governors of the federal reserve system and operating circulars of the federal reserve banks supersede any inconsistent provision of...
• Section 1304.55 - Applicability Of Orc Provisions For Consumer Transactions Governed By Federal Law - Ucc 4a-108.
  (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...
• Section 1304.56 - Security Procedure - Ucc 4a-201.
  "Security procedure" means a procedure established by agreement of a customer and a receiving bank for the purpose of verifying that a payment order...
• Section 1304.57 - Authorized And Verified Payment Orders - Ucc 4a-202.
  (A) A payment order received by the receiving bank is the authorized order of the person identified as sender if that person authorized the...
• Section 1304.58 - Unenforceability Of Certain Verified Payment Orders - Ucc 4a-203.
  (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...
• Section 1304.59 - Refund Of Payment And Duty Of Customer To Report With Respect To Unauthorized Payment Order - Ucc 4a-204.
  (A) If a receiving bank accepts a payment order issued in the name of its customer as sender which is not authorized and not...
• Section 1304.60 - Erroneous Payment Orders - Ucc 4a-205.
  (A) Division (B) of this section applies if an accepted payment order was transmitted pursuant to a security procedure for the detection of error,...
• Section 1304.61 - Transmission Of Payment Order Through Funds-transfer Or Other Communication System - Ucc 4a-206.
  (A) If a payment order addressed to a receiving bank is transmitted to a funds-transfer system or other third-party communication system for transmittal to...
• Section 1304.62 - Misdescription Of Beneficiary - Ucc 4a-207.
  (A) Subject to division (B) of this section, if, in a payment order received by the beneficiary's bank, the name, bank account number, or...
• Section 1304.63 - Misdescription Of Intermediary Bank Or Beneficiary's Bank - Ucc 4a-208.
  (A) (1) Divisions (A)(2) and (3) of this section apply to a payment order identifying an intermediary bank or the beneficiary's bank only by...
• Section 1304.64 - Acceptance Of Payment Order - Ucc 4a-209.
  (A) Subject to division (D) of this section, a receiving bank other than the beneficiary's bank accepts a payment order when it executes the...
• Section 1304.65 - Rejection Of Payment Order - Ucc 4a-210.
  (A) A payment order is rejected by the receiving bank by a notice of rejection transmitted to the sender orally, electronically, or in writing....
• Section 1304.66 - Cancellation And Amendment Of Payment Order - Ucc 4a-211.
  (A) A communication of the sender of a payment order canceling or amending the order may be transmitted to the receiving bank orally, electronically,...
• Section 1304.67 - Liability And Duty Of Receiving Bank Regarding Unaccepted Payment Order - Ucc 4a-212.
  If a receiving bank fails to accept a payment order that it is obliged by express agreement to accept, the bank is liable for...
• Section 1304.68 - Execution And Execution Date - Ucc 4a-301.
  (A) A payment order is executed by the receiving bank when it issues a payment order intended to carry out the payment order received...
• Section 1304.69 - Obligations Of Receiving Bank In Execution Of Payment Order - Ucc 4a-302.
  (A) Except as provided in divisions (B) to (D) of this section, if the receiving bank accepts a payment order pursuant to division (A)...
• Section 1304.70 - Erroneous Execution Of Payment Order - Ucc 4a-303.
  (A) A receiving bank that executes the payment order of the sender by issuing a payment order in an amount greater than the amount...
• Section 1304.71 - Duty Of Sender To Report Erroneously Executed Payment Order - Ucc 4a-304.
  If the sender of a payment order that is erroneously executed as provided in section 1304.70 of the Revised Code receives notification from the...
• Section 1304.72 - Liability For Late Or Improper Execution Or Failure To Execute Payment Order - Ucc 4a-305.
  (A) If a funds transfer is completed but execution of a payment order by the receiving bank without compliance with section 1304.69 of the...
• Section 1304.73 - Payment Date - Ucc 4a-401.
  "Payment date" of a payment order means the day on which the amount of the order is payable to the beneficiary by the beneficiary's...
• Section 1304.74 - Obligation Of Sender To Pay Receiving Bank - Ucc 4a-402.
  (A) This section is subject to sections 1304.60 and 1304.62 of the Revised Code. (B) With respect to a payment order issued to the...
• Section 1304.75 - Payment By Sender To Receiving Bank - Ucc 4a-403.
  (A) Payment of the sender's obligation under section 1304.74 of the Revised Code to pay the receiving bank occurs as follows: (1) If the...
• Section 1304.76 - Obligation Of Beneficiary's Bank To Pay And Give Notice To Beneficiary - Ucc 4a-404.
  (A) Subject to division (E) of section 1304.66 and divisions (D) and (E) of section 1304.77 of the Revised Code, if a beneficiary's bank...
• Section 1304.77 - Payment By Beneficiary's Bank To Beneficiary - Ucc 4a-405.
  (A) If the beneficiary's bank credits an account of the beneficiary of a payment order, payment of the bank's obligation under division (A) of...
• Section 1304.78 - Payment By Originator To Beneficiary - Discharge Of Underlying Obligation - Ucc 4a-406.
  (A) Subject to division (E) of section 1304.66 and divisions (D) and (E) of section 1304.77 of the Revised Code, the originator of a...
• Section 1304.79 - Variation By Agreement And Effect Of Funds-transfer System Rule - Ucc 4a-501.
  (A) "Funds-transfer system rule" means either of the following: (1) A rule of an association of banks that governs transmission of payment orders by...
• Section 1304.80 - Creditor Process Served On Receiving Bank - Setoff By Beneficiary's Bank - Ucc 4a-502.
  (A) As used in this section, "creditor process" means levy, attachment, garnishment, notice of lien, sequestration, or similar process issued by or on behalf...
• Section 1304.81 - Injunction Or Restraining Order With Respect To Funds Transfer - Ucc 4a-503.
  For proper cause and in compliance with applicable law, a court may restrain a person from issuing a payment order to initiate a funds...
• Section 1304.82 - Order In Which Items And Payment Orders May Be Charged To Account - Order Of Withdrawals From Account - Ucc 4a-504.
  (A) If a receiving bank has received more than one payment order of the sender or one or more payment orders and other items...
• Section 1304.83 - Preclusion Of Objection To Debit Of Customer's Account - Ucc 4a-505.
  If a receiving bank has received payment from its customer with respect to a payment order issued in the name of the customer as...
• Section 1304.84 - Rate Of Interest - Ucc 4a-506.
  (A) If, under sections 1304.51 to 1304.85 of the Revised Code, a receiving bank is obliged to pay interest with respect to a payment...
• Section 1304.85 - Choice Of Law - Ucc 4a-507.
  (A) All of the following apply unless the affected parties otherwise agree or division (C) of this section applies: (1) The rights and obligations...

Last modified: October 10, 2016