Effective: October 23, 1991
Latest Legislation: House Bill 221 - 119th General Assembly
(A) A receiving bank that executes the payment order of the sender by issuing a payment order in an amount greater than the amount of the sender's order, or issues a payment order in execution of the sender's order and then issues a duplicate order, is entitled to payment of the amount of the sender's order under division (C) of section 1304.74 of the Revised Code if that division is otherwise satisfied. The bank may recover from the beneficiary of the erroneous order the excess payment received to the extent allowed by the law governing mistake and restitution.
(B) A receiving bank that executes the payment order of the sender by issuing a payment order in an amount less than the amount of the sender's order is entitled to payment of the amount of the sender's order under division (C) of section 1304.74 of the Revised Code if that division is otherwise satisfied and the bank corrects its mistake by issuing an additional payment order for the benefit of the beneficiary of the sender's order. If the error is not corrected, the issuer of the erroneous order may receive or retain payment from the sender of the order it accepted only to the extent of the amount of the erroneous order. This division does not apply if the receiving bank executes the sender's payment order by issuing a payment order in an amount less than the amount of the sender's order for the purpose of obtaining payment of its charges for services and expenses pursuant to instruction of the sender.
(C) If a receiving bank executes the payment order of the sender by issuing a payment order to a beneficiary different from the beneficiary of the sender's order and the funds transfer is completed on the basis of that error, the sender of the payment order that was erroneously executed and all previous senders in the funds transfer are not obliged to pay the payment orders they issued. The issuer of the erroneous order may recover from the beneficiary of the order the payment received to the extent allowed by the law governing mistake and restitution.
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.