Notice of dishonor,
Definition of Notice of dishonor:
A notice of dishonor is a formal notice stating that the bank will not accept a check or draft presented to the institution. A notice of dishonor may be given to the holder or presenter of the instrument. It may also be given to the issuing institution.
Notary publics signed declaration that a valid check or bill of exchange has been dishonored by non-acceptance or non-payment. Required in certain jurisdictions to begin protest action.
A notice of dishonor typically occurs when there are insufficient funds for a bank draft or check. This can happen when a person or institution is low on funds or misses a needed deposit to make the transaction whole.
How to use Notice of dishonor in a sentence?
- A notice of dishonor typically happens often when there are insufficient funds for a bank draft or check.
- A notice of dishonor is a formal notice stating that the bank will not accept a check or draft presented to the institution.
- A properly executed notice of dishonor should identify the instrument being dishonored and clarify that said instrument is not being honored, accepted, or paid.
- According to Article 3, Section 503 of the UCC, a notice of dishonor “may be given by any commercially reasonable means,” including electronic, written, or oral communication.
Meaning of Notice of dishonor & Notice of dishonor Definition