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c0 p x-4929 y (House Bill No. 353) AN ACT To expedite and stm~lify the payment of checks and to provide for return of unpaid checks drawn on closed banks organized under the laws of Ohio and unincorporated banks which have transacted business in the state of Ohio. BE IT ENACTED BY THm GENERAL ASSEMBLY OF SECTION 1. That when an~ ~ STATE OF OHIO: bank incorporated under the laws of this state or any unincorporated bank transacting business in this state Shall have presented to it for collection and payment any check drawn upon it by a depositor in such bank or unincorporated bank, who at the time such check is presented for collection and payment has on deposit an amount equal to such check, if before such check is charged to such depositor's account, such bank or unincorporated bank shall be closed for business by the superintendent of banks of Ohio or by action of its board of directors or by other proper legal action, the superintendent of banks of Ohio or any one who shall at or after the closing of such bank be legally authorized to take charge of the liquidation thereof, Shall upon taking charge of the affairs of such closed bank return such check to the person or banking institution by which it was presented to such closed bank for collection and payment. SECTION 2. In any case where any bank incorporated under the laws of this state or any unincorporated bank doing business in this state, shall have had presented to it for collection and payment a check drawn by a depositor in such bank or unincorporated bank who at the time of the presentation thereof for collection and payment has on deposit a sum equal " X-4929 • -2- to the amount of such check, if such bank or unincorporated bank shall charge to the account of such depositor the amount of such check but shall thereafter be closed for business by the superintendent of banks of Ohio or by action of its boa.rd of directors or by any other proper legal action before payment sh~l have been ~Ae of such check, the charging of such check to such depositor's account shall constitute an appropriation by such bank_or unintorporated b~nk of the assets of such bank or unincorp- orated bank to the payment thereof and sh~.ll impress such assets with tt trust ih behp,lf of the owner of such check and entitle such owner to payment there6f upon liquidation of the assets of such failed ba.nk e.s a preferred claim. SECTION 3. In any case where any bank incorporated under the laws of this state or any unincorporated bank doing business within this state shall have presented to it for collection and a depositor in such b~ pe~ent, or unincorporated bank ~ho a check drawn by at the time such check is presented to it for collection and payment hAs on deposit e~ amount equal to such check, if after the receipt thereof such bank or unincorporated b~.nk shall charge the account of such depositor with the amount thereof and sh1=1ll in t>~yment thereof draw a draft upon another banking institution, which draft shall rem.<~.in unpaid at the time that such bank drawing S?Jrie is closed by the superintendent of banksof Ohio o:r by action of its board of directors or other proper legal action, in such event the assets of such closed bank shall be impressed with a trust for the payment of such draft, and the superintendent of b.t!.nks of Ohio or any one legally c~rged with the liquidation of such closed bank, shall 4 , X-4929 -3:p~y such draft as a preferred cl?.im out of the assets of such failed ba."l.k. SECTION 4. ·In l'l,ny case where any ,, ··., b~nk incorporated under the laws of this state or any unincorporated bank doing business within this state, shall have in its any time ~ossession the proceeds realized from the collection of negotiable instrument by it or by any other collecting agency, at the th:~.t such bank is closed by the superintendent of banks of Ohio or by action of its board of directors or by Rny other proper lega.l action, or in any case ~here lection dtaw any such bank shall in 'Payment of such proceeds of col- a draft ~pon ~nother banking institution which draft shall at the time such bank drawing s~e is closed, as aforesaid, assets of such bank so closed shall be impressed with a trust in behalf of the owner of the negotiable instrurr1ent the proceeds of which are held by such bank so closed or payment of such proceeds has been attempted by such batik so closed by dr~wing a draft as aforesaid, Pnd the owner of the negotiable instrument shall be entitled to payment upon liquidation of the P.ssets of such ba.TJ.k: P.S a preferred clr-dm. Spe.~er 0. C. GRAY, of the House of Representatives. EARL D. :BLOOM, President of the Senate. Passed April 21, 1927. Approved May 2, 1927. VIC DONAHEY, Governor. Filed in the office of Secretary of Stt:\te May 4, 1927. I hereby certify that the foregoing is a true copy of the engrossed bill. CLAR'ID!JCE J. :BRO~ Secretary of State.
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