Cincinnati Insurance v. First National Bank

The primary issue raised in this cause concerns an interpretation of the Ohio Uniform Commercial Code as it applies to the facts of this case. This interpretation revolves around a reading of R. C. 1304.24(A), which provides: “As against its customer, a bank may charge against his account any item which is otherwise properly payable from that account even though the charge creates an overdraft.” All the parties agree, as did the Court of Appeals, that the three checks were not “properly payable” since they were not endorsed by one of the named payees, Allied. This conclusion is mandated by R.…