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Ohio Revised Code

Ohio Rev. Code § 1303.62 (2026)

Dishonor - UCC 3-502

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Effective:
August 19, 1994
Latest Legislation:
Senate Bill 147 - 120th General Assembly
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(A) Dishonor of a note is governed by the following rules:

(1) If the note is payable on demand, the note is dishonored if presentment is duly made to the maker and the note is not paid on the day of presentment.

(2) If the note is not payable on demand and is payable at or through a bank or the terms of the note require presentment, the note is dishonored if presentment is duly made and the note is not paid on the day it becomes payable or the day of presentment, whichever is later.

(3) If the note is not payable on demand and division (A)(2) of this section does not apply, the note is dishonored if it is not paid on the day it becomes payable.

(B) Dishonor of an unaccepted draft other than a documentary draft is governed by the following rules:

(1) If a check is duly presented for payment to the payor bank otherwise than for immediate payment over the counter, the check is dishonored if the payor bank makes timely return of the check or sends timely notice of dishonor or nonpayment under section 1304.27 or 1304.28 of the Revised Code or becomes accountable for the amount of the check under section 1304.28 of the Revised Code.

(2) If a draft is payable on demand and division (B)(1) of this section does not apply, the draft is dishonored if presentment for payment is duly made to the drawee and the draft is not paid on the day of presentment.

(3) If a draft is payable on a date stated in the draft, the draft is dishonored if presentment for payment is duly made to the drawee and payment is not made on the day the draft becomes payable or the day of presentment, whichever is later, or presentment for acceptance is duly made before the day the draft becomes payable and the draft is not accepted on the day of presentment.

(4) If a draft is payable on elapse of a period of time after sight or acceptance, the draft is dishonored if presentment for acceptance is duly made and the draft is not accepted on the day of presentment.

(C) Dishonor of an unaccepted documentary draft occurs according to the rules stated in divisions (B)(2), (3), and (4) of this section, except that payment or acceptance may be delayed without dishonor until no later than the close of the third business day of the drawee following the day on which payment or acceptance is required by those paragraphs.

(D) Dishonor of an accepted draft is governed by the following rules:

(1) If the draft is payable on demand, the draft is dishonored if presentment for payment is duly made to the acceptor and the draft is not paid on the day of presentment.

(2) If the draft is not payable on demand, the draft is dishonored if presentment for payment is duly made to the acceptor and payment is not made on the day it becomes payable or the day of presentment, whichever is later.

(E) In any case in which presentment is otherwise required for dishonor under this section and presentment is excused under section 1303.64 of the Revised Code, dishonor occurs without presentment if the instrument is not duly accepted or paid.

(F) If a draft is dishonored because timely acceptance of the draft was not made and the person entitled to demand acceptance consents to a late acceptance, from the time of acceptance the draft is treated as never having been dishonored.
Notes of Decisions
Cited in 3 cases, 2010–2016 · leading case: State v. Terry, 186 Ohio App. 3d 670 (Ohio Ct. App. 4th Dist. 2010).
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State v. Terry, 186 Ohio App. 3d 670 (Ohio Ct. App. 4th Dist. 2010). · cites it 5× “{¶ 38} R.C. 1303.62 addresses “dishonor.” In the case of bank collections, dishonor occurs when the check is seasonably returned by the midnight deadline as provided by Article 4 of the Uniform Commercial Code (“UCC”).”
Romano's Carryout, Inc. v. P.F. Chang's China Bistro, Inc., 964 N.E.2d 1102 (Ohio Ct. App. 10th Dist. 2011). “28 of the Revised Code * * R.C. 1303.62(B)(1). The parties do not dispute that Bank of America, P.”
U.S. Bank Natl. Assn. v. Clarke, 2016-Ohio-8435. “{¶ 36} R.C. 1303.62(A)(2), or UCC 3-502, provide that, as to a note, "dishonor" occurs when the note is one "not payable on demand and [] payable at or through a bank or the terms of the note require presentment" and when "presentment is duly made and the note is not paid on the…”
Ohio Rev. Code § 1303.62(A)(2): 1 case
U.S. Bank Natl. Assn. v. Clarke, 2016-Ohio-8435. “{¶ 36} R.C. 1303.62(A)(2), or UCC 3-502, provide that, as to a note, "dishonor" occurs when the note is one "not payable on demand and [] payable at or through a bank or the terms of the note require presentment" and when "presentment is duly made and the note is not paid on the…”
Ohio Rev. Code § 1303.62(B)(1): 2 cases
Romano's Carryout, Inc. v. P.F. Chang's China Bistro, Inc., 964 N.E.2d 1102 (Ohio Ct. App. 10th Dist. 2011). “28 of the Revised Code * * R.C. 1303.62(B)(1). The parties do not dispute that Bank of America, P.”
State v. Terry, 186 Ohio App. 3d 670 (Ohio Ct. App. 4th Dist. 2010). “{¶ 38} R.C. 1303.62 addresses “dishonor.” In the case of bank collections, dishonor occurs when the check is seasonably returned by the midnight deadline as provided by Article 4 of the Uniform Commercial Code (“UCC”).”
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