Notice of dishonor

Notice of dishonor,

Definition of Notice of dishonor:

  1. 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.

  2. 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.

  3. 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?

  1. A notice of dishonor typically happens often when there are insufficient funds for a bank draft or check.
  2. A notice of dishonor is a formal notice stating that the bank will not accept a check or draft presented to the institution.
  3. A properly executed notice of dishonor should identify the instrument being dishonored and clarify that said instrument is not being honored, accepted, or paid.
  4. 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