Ohio Court Enforces "State Of The Art" Language Regarding Positive-Pay In Deposit Account
LexisNexis (March 1, 2017, 12:34 PM EST) -- In a notable recent decision, an Ohio federal district court has ruled that a business customer must bear the risk of unauthorized checks, based on language in the deposit agreement that disclaims bank liability where the customer has declined the opportunity to enroll in the bank's "positive-pay" product. The bank got rid of the customer's suit on a motion to dismiss.
The Ohio case. In Majestic Building Maintenance, Inc. v. Huntington National Bank, 91 UCC Rep. 2d 47 (S.D. Ohio 2016), Majestic opened a business checking...