Effective: October 23, 1991
Latest Legislation: House Bill 221 - 119th General Assembly
(A) A payment order is rejected by the receiving bank by a notice of rejection transmitted to the sender orally, electronically, or in writing. A notice of rejection need not use any particular words and is sufficient if it indicates that the receiving bank is rejecting the order or will not execute or pay the order. Rejection is effective when the notice is given if transmission is by a means that is reasonable in the circumstances. If notice of rejection is given by a means that is not reasonable, rejection is effective when the notice is received. If an agreement of the sender and receiving bank establishes the means to be used to reject a payment order, any means complying with the agreement is reasonable, and any means not complying is not reasonable unless no significant delay in receipt of the notice resulted from the use of the noncomplying means.
(B) This division applies if a receiving bank other than the beneficiary's bank fails to execute a payment order despite the existence on the execution date of a withdrawable credit balance in an authorized account of the sender sufficient to cover the order. If the sender does not receive notice of rejection of the order on the execution date and the authorized account of the sender does not bear interest, the bank shall pay interest to the sender on the amount of the order for the number of days elapsing after the execution date to the earlier of the day the order is canceled pursuant to division (D) of section 1304.66 of the Revised Code or the day the sender receives notice or learns that the order was not executed, counting the final day of the period as an elapsed day. If the withdrawable credit balance during that period falls below the amount of the order, the amount of interest is reduced accordingly.
(C) If a receiving bank suspends payments, all unaccepted payment orders issued to it are deemed rejected at the time the bank suspends payments.
(D) Acceptance of a payment order precludes a later rejection of the order. Rejection of a payment order precludes a later acceptance of the order.
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.