Effective: June 29, 2011
Latest Legislation: House Bill 9 - 129th General Assembly
(A) If a receiving bank accepts a payment order issued in the name of its customer as sender which is not authorized and not effective as the order of the customer under section 1304.57 of the Revised Code, or not enforceable, in whole or in part, against the customer under section 1304.58 of the Revised Code, the bank shall refund any payment of the payment order received from the customer to the extent the bank is not entitled to enforce payment and shall pay interest on the refundable amount calculated from the date the bank received payment to the date of the refund. The customer is not entitled to interest from the bank on the amount to be refunded if the customer fails to exercise ordinary care to determine that the order was not authorized by the customer and to notify the bank of the relevant facts within a reasonable time not exceeding ninety days after the date the customer received notification from the bank that the order was accepted or that the customer's account was debited with respect to the order. The bank is not entitled to any recovery from the customer on account of a failure by the customer to give notification as stated in this section.
(B) Reasonable time under division (A) of this section may be fixed by agreement as provided in division (B) of section 1301.302 of the Revised Code, but the obligation of a receiving bank to refund payment as provided in division (A) of this section may not otherwise be varied by agreement.
Structure 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 1304.04 | 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 1304.12 | 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 1304.21 | When Bank Gives Value for Purposes of Holder in Due Course - Ucc 4-211.
Section 1304.23 | Medium and Time of Settlement by Bank - Ucc 4-213.
Section 1304.26 | Insolvency and Preference - Ucc 4-216.
Section 1304.28 | Payor Bank's Responsibility for Late Return of Item - Ucc 4-302.
Section 1304.30 | When Bank May Charge Customer's Account - Ucc 4-401.
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 1304.36 | Payor Bank's Right to Subrogation on Improper Payment - Ucc 4-407.
Section 1304.38 | Presentment of on Arrival Drafts - Ucc 4-502.
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 1304.56 | 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 1304.60 | Erroneous Payment Orders - Ucc 4a-205.
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 1304.68 | 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 1304.73 | 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 1304.77 | Payment by Beneficiary's Bank to Beneficiary - Ucc 4a-405.
Section 1304.79 | Variation by Agreement and Effect of Funds-Transfer System Rule - Ucc 4a-501.
Section 1304.81 | Injunction or Restraining Order With Respect to Funds Transfer - Ucc 4a-503.
Section 1304.83 | Preclusion of Objection to Debit of Customer's Account - Ucc 4a-505.