Dishonor by non-payment

Dishonor by non-payment,

Definition of Dishonor by non-payment:

  1. Failure of a drawee to pay a valid bill of exchange on its due date. This failure gives the drawer the legal right to the start a court action called protest.

  2. Failure of a drawer to pay a valid check on presentment. In many jurisdictions, the drawer of a check that is dishonored due to insufficient funds is guilty of a criminal offense.

Meaning of Dishonor by non-payment & Dishonor by non-payment Definition