Effective: October 23, 1991
Latest Legislation: House Bill 221 - 119th General Assembly
(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 Revised Code results in delay in payment to the beneficiary, the bank shall pay interest to either the originator or the beneficiary of the funds transfer for the period of delay caused by the improper execution. Except as provided in division (C) of this section, additional damages are not recoverable.
(B) If execution of a payment order by a receiving bank without compliance with section 1304.69 of the Revised Code results in noncompletion of the funds transfer, failure to use an intermediary bank designated by the originator, or issuance of a payment order that does not comply with the terms of the payment order of the originator, the bank is liable to the originator for its expenses in the funds transfer and for incidental expenses and interest losses, to the extent not covered by division (A) of this section, resulting from the improper execution. Except as provided in division (C) of this section, additional damages are not recoverable.
(C) In addition to the amounts payable under divisions (A) and (B) of this section, damages, including consequential damages, are recoverable to the extent provided in an express written agreement of the receiving bank.
(D) If a receiving bank fails to execute a payment order it was obliged by express agreement to execute, the receiving bank is liable to the sender for its expenses in the transaction and for incidental expenses and interest losses resulting from the failure to execute. Additional damages, including consequential damages, are recoverable to the extent provided in an express written agreement of the receiving bank, but are not otherwise recoverable.
(E) Reasonable attorney's fees are recoverable if demand for compensation under division (A) or (B) of this section is made and refused before an action is brought on the claim. If a claim is made for breach of an agreement under division (D) of this section and the agreement does not provide for damages, reasonable attorney's fees are recoverable if demand for compensation under division (D) of this section is made and refused before an action is brought on the claim.
(F) Except as stated in this section, the liability of a receiving bank under divisions (A) and (B) of this section may not 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.