Ohio Code § 1304.27

§ 1304.27.

(A) If a payor bank settles for a demand item other than a documentary draft presented

otherwise than for immediate payment over the counter before midnight of the banking

day of receipt, the payor bank may revoke the settlement and recover the settlement

if before it has made final payment and before its midnight deadline it does any of

the following: (1) It returns the item. (2) It returns an image of the item, if the party to which the return is made has entered

into an agreement to accept an image as a return of the item and the image is returned

in accordance with that agreement. (3) It sends a record providing notice of dishonor or nonpayment if the item is unavailable

for return. (B) If a demand item is received by a payor bank for credit on its books, it may return

the item or send notice of dishonor and may revoke any credit given or recover the

amount of any credit withdrawn by its customer, if it acts within the time limit and

in the manner specified in division (A) of this section. (C) Unless previous notice of dishonor has been sent, an item is dishonored at the time

when for purposes of dishonor it is returned or notice sent in accordance with this

section. (D) An item is returned at either of the following times: (1) As to an item presented through a clearing house, when it is delivered to the presenting

or last collecting bank or to the clearing house or is sent or delivered in accordance

with its rules; (2) In all other cases, when it is sent or delivered to the bank's customer or transferor

or pursuant to the customer's or transferor's instructions.