Ohio § 1309.608

§ 1309.608.

(A) If a security interest or agricultural lien secures payment or performance of an

obligation, the following rules apply: (1) A secured party shall apply or pay over for application the cash proceeds of collection

or enforcement under section 1309.607 of the Revised Code in the following order: (a) The reasonable expenses of collection and enforcement and, to the extent provided

for by agreement and not prohibited by law, reasonable attorney's fees and legal expenses

incurred by the secured party; (b) The satisfaction of obligations secured by the security interest or agricultural

lien under which the collection or enforcement is made;  and (c) The satisfaction of obligations secured by any subordinate security interest in or

other lien on the collateral subject to the security interest or agricultural lien

under which the collection or enforcement is made if the secured party receives an

authenticated demand for proceeds before distribution of the proceeds is completed. (2) If requested by a secured party, a holder of a subordinate security interest or other

lien shall furnish reasonable proof of the interest or lien within a reasonable time.  Unless the holder complies, the secured party is not required to comply with the

holder's demand made under division (A)(1)(c) of this section. (3) A secured party is not required to apply or pay over for application noncash proceeds

of collection and enforcement under section 1309.607 of the Revised Code unless the failure to do so would be commercially unreasonable.  A secured party who applies or pays over for application noncash proceeds shall

do so in a commercially reasonable manner. (4) A secured party shall account to and pay a debtor for any surplus, and the obligor

is liable for any deficiency. (B) If the underlying transaction is a sale of accounts, chattel paper, payment intangibles,

or promissory notes, the debtor is not entitled to any surplus, and the obligor is

not liable for any deficiency.