Effective: October 23, 1991
Latest Legislation: House Bill 221 - 119th General Assembly
(A) As used in this section, "creditor process" means levy, attachment, garnishment, notice of lien, sequestration, or similar process issued by or on behalf of a creditor or other claimant with respect to an account.
(B) This division applies to creditor process with respect to an authorized account of the sender of a payment order if the creditor process is served on the receiving bank. For the purpose of determining rights regarding the creditor process, if the receiving bank accepts the payment order, the balance in the authorized account is deemed to be reduced by the amount of the payment order to the extent the bank did not otherwise receive payment of the order, unless the creditor process is served at a time and in a manner affording the bank a reasonable opportunity to act on it before the bank accepts the payment order.
(C) If a beneficiary's bank has received a payment order for payment to the beneficiary's account in the bank, all of the following apply:
(1) The bank may credit the beneficiary's account. The amount credited may be set off against an obligation owed by the beneficiary to the bank or may be applied to satisfy creditor process served on the bank regarding the account.
(2) The bank may credit the beneficiary's account and allow withdrawal of the amount credited unless creditor process with respect to the account is served at a time and in a manner affording the bank a reasonable opportunity to act to prevent withdrawal.
(3) If creditor process regarding the beneficiary's account has been served and the bank has had a reasonable opportunity to act on it, the bank may reject the payment order except for a reason unrelated to the service of process.
(D) Creditor process regarding a payment by the originator to the beneficiary pursuant to a funds transfer may be served only on the beneficiary's bank regarding the debt owed by that bank to the beneficiary. Any other bank served with the creditor process is not obliged to act regarding the process.
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.