Ohio Code § 1303.35

§ 1303.35.

(A) Except as otherwise stated in this section, the right to enforce the obligation of

a party to pay an instrument is subject to all of the following: (1) A defense of the obligor based on any of the following: (a) Infancy of the obligor to the extent it is a defense to a simple contract; (b) Duress, lack of legal capacity, or illegality of the transaction that, under other

law, nullifies the obligation of the obligor; (c) Fraud that induced the obligor to sign the instrument with neither knowledge nor

reasonable opportunity to learn of its character or its essential terms; (d) Discharge of the obligor in insolvency proceedings. (2) A defense of the obligor set forth in a section of this chapter or a defense of the

obligor that would be available if the person entitled to enforce the instrument were

enforcing a right to payment under a simple contract; (3) A claim in recoupment of the obligor against the original payee of the instrument

if the claim arose from the transaction that gave rise to the instrument, but the

claim of the obligor may be asserted against a transferee of the instrument only to

reduce the amount owing on the instrument at the time the action is brought. (B) The right of a holder in due course to enforce the obligation of a party to pay the

instrument is subject to the defenses of the obligor stated in division (A)(1) of

this section but is not subject to defenses of the obligor stated in division (A)(2)

of this section or to claims in recoupment stated in division (A)(3) of this section

against a person other than the holder. (C) Except as stated in division (D) of this section, in an action to enforce the obligation

of a party to pay the instrument, the obligor may not assert against the person entitled

to enforce the instrument a defense, a claim in recoupment, or a claim of another

person to the instrument under division (C) of section 1303.36 of the Revised Code , but the other person's claim to the instrument may be asserted by the obligor if

the other person is joined in the action and personally asserts the claim against

the person entitled to enforce the instrument.  An obligor is not required to pay the instrument if the person seeking enforcement

of the instrument does not have rights of a holder in due course and the obligor proves

that the instrument is a lost or stolen instrument. (D) In an action to enforce the obligation of an accommodation party to pay an instrument,

the accommodation party may assert against the person entitled to enforce the instrument

any defense or claim in recoupment under division (A) of this section that the accommodated

party could assert against the person entitled to enforce the instrument, except the

defenses of discharge in insolvency proceedings, infancy, and lack of legal capacity. (E) In a consumer transaction, if any law other than this chapter requires that an instrument

include a statement to the effect that the rights of a holder or transferee are subject

to a claim or defense that the issuer could assert against the original payee, and

the instrument does not include such a statement, all of the following apply: (1) The instrument has the same effect as if the instrument included such a statement. (2) The issuer may assert against the holder or transferee all claims and defenses that

would have been available if the instrument included such a statement. (3) The extent to which claims may be asserted against the holder or transferee is determined

as if the instrument included such a statement. (F) This section is subject to any law, other than this chapter, that establishes a different

rule for consumer transactions.