(A) Unless otherwise agreed, if a certified check, cashier's check, or teller's check is taken for an obligation, the obligation is discharged to the same extent discharge would result if an amount of money equal to the amount of the instrument were taken in payment of the obligation. The discharge of the obligation does not affect any liability that the obligor may have as an indorser of the instrument taken in payment of the obligation.
(B) Unless otherwise agreed and except as provided in division (A) of this section, if a note or an uncertified check is taken for an obligation, the obligation is suspended to the same extent the obligation would be discharged if an amount of money equal to the amount of the instrument were taken, and all of the following rules apply:
(1) In the case of an uncertified check, suspension of the obligation continues until dishonor of the check or until it is paid or certified. Payment or certification of the check results in discharge of the obligation to the extent of the amount of the check.
(2) In the case of a note, suspension of the obligation continues until dishonor of the note or until it is paid. Payment of the note results in discharge of the obligation to the extent of the payment.
(3) Except as provided in division (B)(4) of this section, if the check or note is dishonored and the obligee of the obligation for which the instrument was taken is the person entitled to enforce the instrument, the obligee may enforce either the instrument or the obligation. In the case of an instrument of a third person that is negotiated to the obligee by the obligor, discharge of the obligor on the instrument also discharges the obligation.
(4) If the person entitled to enforce the instrument taken for an obligation is a person other than the obligee, the obligee may not enforce the obligation to the extent the obligation is suspended. If the obligee is the person entitled to enforce the instrument but no longer has possession of it because it was lost, stolen, or destroyed, the obligation may not be enforced to the extent of the amount payable on the instrument, and to that extent the obligee's rights against the obligor are limited to enforcement of the instrument.
(C) If an instrument other than one described in division (A) or (B) of this section is taken for an obligation, division (A) of this section shall apply if the instrument is one on which a bank is liable as maker or acceptor, and division (B) of this section shall apply in all other instances.
Notes of Decisions
Cited in 10
cases (1 in the last 5 years), 1961–2026 · leading case: Morris v. Ohio Cas. Ins., 517 N.E.2d 904 (Ohio 1988).
Morris v. Ohio Cas. Ins., 517 N.E.2d 904 (Ohio 1988). · cites it 2ד*49 Further, contrary to appellant’s contention that attorney Whitney properly endorsed, pursuant to R.C. 1303.39(A), 3 and deposited the drafts into his escrow account, the only admissible evidence in the record, Whitney’s affidavit, reflects that Whitney endorsed neither draft…”
Edward A. Kemmler Mem'l Found. v. 691/733 East Dublin-Granville Road Co., 584 N.E.2d 695 (Ohio 1992). · cites it 3ד” R.C. 1303.39 (UCC 3-403) pertains to signatures by agents and other representatives, and provides in pertinent part: “(A) A signature may be made by an agent or other representative, and his authority to make it may be established as in other cases of representation.”
In Re Tabor, 232 B.R. 85 (Bankr. N.D. Ohio 1999). · cites it 5ד” ORC § 1303.39(B)(2) (emphasis added). “To the extent ambiguity exists, evidence of the parties’ intent is necessary to resolve the issue of liability and to ascertain whether the parties intended personal liability or intended to bind the principal .”
Wise v. Duker, 566 N.E.2d 1248 (Ohio Ct. App. 1988). · cites it 3דR.C. 1303.39 states as follows: “(A) A signature may be made by an agent or other representative, and his authority to make it may be established as in other cases of representation.”
J. Bowers Constr. Co. v. Williams (In Re Williams), 233 B.R. 398 (Bankr. N.D. Ohio 1999). “See also Ohio Revised Code § 1303.39 (which addresses the liability of agents who sign negotiable instruments on behalf of a principal).”
First Nat'l Bank of Findlay v. Fulk, 566 N.E.2d 1270 (Ohio Ct. App. 1989). · cites it 4דHowever, the bank argues that Maudie was an authorized user and is liable for the amount due on the account pursuant to R.C. 1303.39(B), which states in pertinent part: “An authorized representative who signs his own name to an instrument: “(1) is personally obligated if the…”
U.S. Bank Natl. Assn. v. Clarke, 2016 Ohio 8435 (Ohio Ct. App. 2016). · cites it 3דBut taking a discharge in bankruptcy to be another form of dishonor of a note that evidences a debt, as apparently did the Supreme Court in Holden, the dishonor of a note affects who may enforce the underlying debt. The Supreme Court in Holden did not address this, but instead…”
Capital One, N.A. v. Jones, 2026 Ohio 62 (Ohio Ct. App. 2026). “1989) (“Since the charge slips are not negotiable instruments, and R.C. 1303.39(B) pertains only to negotiable instruments, we find that this section of the Ohio Revised Code is not applicable to the case at bar.”
Sherber v. O'Grady, 175 N.E.2d 864 (Ohio Ct. App. 1961). · cites it 2דSection 1303.39, Revised Code, is also applicable.”
Morris v. Ohio Cas. Ins., 517 N.E.2d 904 (Ohio 1988). “*49 Further, contrary to appellant’s contention that attorney Whitney properly endorsed, pursuant to R.C. 1303.39(A), 3 and deposited the drafts into his escrow account, the only admissible evidence in the record, Whitney’s affidavit, reflects that Whitney endorsed neither draft…”
U.S. Bank Natl. Assn. v. Clarke, 2016 Ohio 8435 (Ohio Ct. App. 2016). “But taking a discharge in bankruptcy to be another form of dishonor of a note that evidences a debt, as apparently did the Supreme Court in Holden, the dishonor of a note affects who may enforce the underlying debt. The Supreme Court in Holden did not address this, but instead…”
Ohio Rev. Code § 1303.39(B): 2 cases
First Nat'l Bank of Findlay v. Fulk, 566 N.E.2d 1270 (Ohio Ct. App. 1989). “However, the bank argues that Maudie was an authorized user and is liable for the amount due on the account pursuant to R.C. 1303.39(B), which states in pertinent part: “An authorized representative who signs his own name to an instrument: “(1) is personally obligated if the…”
Capital One, N.A. v. Jones, 2026 Ohio 62 (Ohio Ct. App. 2026). “1989) (“Since the charge slips are not negotiable instruments, and R.C. 1303.39(B) pertains only to negotiable instruments, we find that this section of the Ohio Revised Code is not applicable to the case at bar.”
Ohio Rev. Code § 1303.39(B)(2): 2 cases
In Re Tabor, 232 B.R. 85 (Bankr. N.D. Ohio 1999). “” ORC § 1303.39(B)(2) (emphasis added). “To the extent ambiguity exists, evidence of the parties’ intent is necessary to resolve the issue of liability and to ascertain whether the parties intended personal liability or intended to bind the principal .”
U.S. Bank Natl. Assn. v. Clarke, 2016 Ohio 8435 (Ohio Ct. App. 2016). “But taking a discharge in bankruptcy to be another form of dishonor of a note that evidences a debt, as apparently did the Supreme Court in Holden, the dishonor of a note affects who may enforce the underlying debt. The Supreme Court in Holden did not address this, but instead…”
Ohio Rev. Code § 1303.39(B)(3): 1 case
U.S. Bank Natl. Assn. v. Clarke, 2016 Ohio 8435 (Ohio Ct. App. 2016). “But taking a discharge in bankruptcy to be another form of dishonor of a note that evidences a debt, as apparently did the Supreme Court in Holden, the dishonor of a note affects who may enforce the underlying debt. The Supreme Court in Holden did not address this, but instead…”
Ohio Rev. Code § 1303.39(C): 1 case
Wise v. Duker, 566 N.E.2d 1248 (Ohio Ct. App. 1988). “R.C. 1303.39 states as follows: “(A) A signature may be made by an agent or other representative, and his authority to make it may be established as in other cases of representation.”
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