Ohio § 1303.56

§ 1303.56.

(A) A person who transfers an instrument for consideration warrants all of the following

to the transferee and, if the transfer is by indorsement, to any subsequent transferee: (1) The warrantor is a person entitled to enforce the instrument. (2) All signatures on the instrument are authentic and authorized. (3) The instrument has not been altered. (4) The instrument is not subject to a defense or claim in recoupment of any party which

can be asserted against the warrantor. (5) The warrantor has no knowledge of any insolvency proceeding commenced with respect

to the maker or acceptor or, in the case of an unaccepted draft, the drawer. (6) With respect to a remotely created consumer item, the person on whose account the

item is drawn authorized the issuance of the item in the amount for which the item

is drawn. (B) A person to whom the warranties set forth in division (A) of this section are made

and who took the instrument in good faith may recover from the warrantor as damages

for breach of warranty an amount equal to the loss suffered as a result of the breach,

but not more than the amount of the instrument plus expenses and loss of interest

incurred as a result of the breach. (C) The warranties set forth in division (A) of this section cannot be disclaimed with

respect to checks.  Unless notice of a claim for breach of warranty is given to the warrantor within

thirty days after the claimant has reason to know of the breach and the identity of

the warrantor, the liability of the warrantor under division (B) of this section is

discharged to the extent of any loss caused by the delay in giving notice of the claim. (D) A cause of action for breach of warranty under this section accrues when the claimant

has reason to know of the breach.