Ohio Code § 1304.20

§ 1304.20.

(A) A collecting bank has a security interest in an item and any accompanying documents

or the proceeds of the item or documents in any of the following manners: (1) In the case of an item deposited in an account, to the extent to which credit given

for the item has been withdrawn or applied; (2) In the case of an item for which it has given credit available for withdrawal as

of right, to the extent of the credit given, whether or not the credit is drawn upon

or there is a right of charge-back; (3) If it makes an advance on or against the item. (B) If credit given for several items received at one time or pursuant to a single agreement

is withdrawn or applied in part, the security interest remains upon all the items,

any accompanying documents, or the proceeds of either.  For the purpose of this section, credits first given are first withdrawn. (C) Receipt by a collecting bank of a final settlement for an item is a realization on

its security interest in the item, accompanying documents, and proceeds.  So long as the bank does not receive final settlement for the item or give up possession

of the item or possession or control of the accompanying documents for purposes other

than collection, the security interest continues to that extent and is subject to

Chapter 1309. of the Revised Code, except for all of the following: (1) No security agreement is necessary to make the security interest enforceable under division (B)(3)(a) of section 1309.203 of the Revised Code . (2) No filing is required to perfect the security interest. (3) The security interest has priority over conflicting perfected security interests

in the item, accompanying documents, or proceeds.