Ohio § 1303.39

§ 1303.39.

(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.