Ohio § 1304.03

§ 1304.03.

(A) The effect of the provisions of this chapter may be varied by agreement, but the

parties to the agreement cannot disclaim a bank's responsibility for its lack of good

faith or failure to exercise ordinary care or limit the measure of damages for the

lack or failure.  However, the parties may determine by agreement the standards by which the bank's

responsibility is to be measured if those standards are not manifestly unreasonable. (B) Federal Reserve regulations and operating circulars, clearing house rules, and similar

regulations, documents, and rules have the effect of agreements under division (A)

of this section, whether or not specifically assented to by all parties interested

in items handled. (C) Action or non-action approved by sections 1304.01 to 1304.40 of the Revised Code or pursuant to Federal Reserve regulations or operating circulars is the exercise

of ordinary care, and, in the absence of special instructions, action or non-action

consistent with clearing house rules and similar rules or with a general banking usage

not disapproved by sections 1304.01 to 1304.40 of the Revised Code is prima facie the exercise of ordinary care. (D) The specification or approval of certain procedures by sections 1304.01 to 1304.40 of the Revised Code is not disapproval of other procedures that may be reasonable under the circumstances. (E) The measure of damages for failure to exercise ordinary care in handling an item

is the amount of the item reduced by an amount that could not have been realized by

the exercise of ordinary care.  If there also is bad faith, the measure of damages includes any other damages the

party suffered as a proximate consequence.