Ohio Revised Code
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.

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Structure Ohio Revised Code

Ohio Revised Code

Title 13 | Commercial Transactions

Chapter 1304 | Bank Deposits and Collections

Section 1304.01 | Definitions - Ucc 4-104, 4-105.

Section 1304.02 | Applicability - Ucc 4-102.

Section 1304.03 | Variation by Agreement - Measure of Damages - Action Constituting Ordinary Care - Ucc 4-103.

Section 1304.04 | Separate Office of Bank - Ucc 4-107.

Section 1304.05 | Payable Through or Payable at Bank - Ucc 4-106.

Section 1304.06 | Time of Receipt of Items - Ucc 4-108.

Section 1304.07 | Delays - Ucc 4-109.

Section 1304.08 | Electronic Presentment - Ucc 4-110.

Section 1304.09 | Statute of Limitations - Ucc 4-111.

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.

Section 1304.12 | Responsibility for Collection or Return - When Action Timely - Ucc 4-202.

Section 1304.13 | Effect of Instructions - Ucc 4-203.

Section 1304.14 | Methods of Sending and Presenting - Sending Directly to Payor Bank - Ucc 4-204.

Section 1304.15 | Depositary Bank Holder of Unindorsed Item - Ucc 4-205.

Section 1304.16 | Transfer Between Banks - Ucc 4-206.

Section 1304.17 | Transfer Warranties - Ucc 4-207.

Section 1304.18 | Presentment Warranties - Ucc 4-208.

Section 1304.19 | Encoding and Retention Warranties - Ucc 4-209.

Section 1304.20 | Security Interest of Collecting Bank in Items, Accompanying Documents and Proceeds - Ucc 4-210.

Section 1304.21 | When Bank Gives Value for Purposes of Holder in Due Course - Ucc 4-211.

Section 1304.22 | Presentment by Notice of Item Not Payable By, Through, or at Bank - Liability of Drawer or Indorser - Ucc 4-212.

Section 1304.23 | Medium and Time of Settlement by Bank - Ucc 4-213.

Section 1304.24 | Right of Charge-Back or Refund - Liability of Collecting Bank - Return of Item - Ucc 4-214.

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.

Section 1304.26 | Insolvency and Preference - Ucc 4-216.

Section 1304.27 | Deferred Posting - Recovery of Payment by Return of Items - Time of Dishonor - Return of Items by Payor Bank - Ucc 4-301.

Section 1304.28 | Payor Bank's Responsibility for Late Return of Item - Ucc 4-302.

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.

Section 1304.30 | When Bank May Charge Customer's Account - Ucc 4-401.

Section 1304.31 | Bank's Liability to Customer for Wrongful Dishonor - Time of Determining Insufficiency of Account - Ucc 4-402.

Section 1304.32 | Customer's Right to Stop Payment - Burden of Proof of Loss - Ucc 4-403.

Section 1304.33 | Bank Not Obliged to Pay Check More Than Six Months Old - Ucc 4-404.

Section 1304.34 | Death or Incompetence of Customer - Ucc 4-405.

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

Section 1304.36 | Payor Bank's Right to Subrogation on Improper Payment - Ucc 4-407.

Section 1304.37 | Handling of Documentary Drafts - Duty to Send for Presentment and to Notify Customer of Dishonor - Ucc 4-501.

Section 1304.38 | Presentment of on Arrival Drafts - Ucc 4-502.

Section 1304.39 | Responsibility of Presenting Bank for Documents and Goods - Report of Reasons for Dishonor - Referee in Case of Need - Ucc 4-503.

Section 1304.40 | Privilege of Presenting Bank to Deal With Goods - Security Interest for Expenses - Ucc 4-504.

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

Section 1304.52 | Application of Provisions - Ucc 4a-102.

Section 1304.53 | Time Payment Order Is Received - Ucc 4a-106.

Section 1304.54 | Federal Reserve Regulations and Operating Circulars - Ucc 4a-107.

Section 1304.55 | Applicability of Orc Provisions for Consumer Transactions Governed by Federal Law - Ucc 4a-108.

Section 1304.56 | Security Procedure - Ucc 4a-201.

Section 1304.57 | Authorized and Verified Payment Orders - Ucc 4a-202.

Section 1304.58 | Unenforceability of Certain Verified Payment Orders - Ucc 4a-203.

Section 1304.59 | Refund of Payment and Duty of Customer to Report With Respect to Unauthorized Payment Order - Ucc 4a-204.

Section 1304.60 | Erroneous Payment Orders - Ucc 4a-205.

Section 1304.61 | Transmission of Payment Order Through Funds-Transfer or Other Communication System - Ucc 4a-206.

Section 1304.62 | Misdescription of Beneficiary - Ucc 4a-207.

Section 1304.63 | Misdescription of Intermediary Bank or Beneficiary's Bank - Ucc 4a-208.

Section 1304.64 | Acceptance of Payment Order - Ucc 4a-209.

Section 1304.65 | Rejection of Payment Order - Ucc 4a-210.

Section 1304.66 | Cancellation and Amendment of Payment Order - Ucc 4a-211.

Section 1304.67 | Liability and Duty of Receiving Bank Regarding Unaccepted Payment Order - Ucc 4a-212.

Section 1304.68 | Execution and Execution Date - Ucc 4a-301.

Section 1304.69 | Obligations of Receiving Bank in Execution of Payment Order - Ucc 4a-302.

Section 1304.70 | Erroneous Execution of Payment Order - Ucc 4a-303.

Section 1304.71 | Duty of Sender to Report Erroneously Executed Payment Order - Ucc 4a-304.

Section 1304.72 | Liability for Late or Improper Execution or Failure to Execute Payment Order - Ucc 4a-305.

Section 1304.73 | Payment Date - Ucc 4a-401.

Section 1304.74 | Obligation of Sender to Pay Receiving Bank - Ucc 4a-402.

Section 1304.75 | Payment by Sender to Receiving Bank - Ucc 4a-403.

Section 1304.76 | Obligation of Beneficiary's Bank to Pay and Give Notice to Beneficiary - Ucc 4a-404.

Section 1304.77 | Payment by Beneficiary's Bank to Beneficiary - Ucc 4a-405.

Section 1304.78 | Payment by Originator to Beneficiary - Discharge of Underlying Obligation - Ucc 4a-406.

Section 1304.79 | Variation by Agreement and Effect of Funds-Transfer System Rule - Ucc 4a-501.

Section 1304.80 | Creditor Process Served on Receiving Bank - Setoff by Beneficiary's Bank - Ucc 4a-502.

Section 1304.81 | Injunction or Restraining Order With Respect to Funds Transfer - Ucc 4a-503.

Section 1304.82 | Order in Which Items and Payment Orders May Be Charged to Account - Order of Withdrawals From Account - Ucc 4a-504.

Section 1304.83 | Preclusion of Objection to Debit of Customer's Account - Ucc 4a-505.

Section 1304.84 | Rate of Interest - Ucc 4a-506.

Section 1304.85 | Choice of Law - Ucc 4a-507.