Notice Of Dishonor

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DEFINITION of 'Notice Of Dishonor'

A formal notice stating that the bank that a check or draft is presented to will not honor the instrument. A notice of dishonor may be given to the holder or presenter of the instrument. It may also be given to the issuing institution.

INVESTOPEDIA EXPLAINS 'Notice Of Dishonor'

A notice of dishonor must be signed by a notary public. The notice is valued as long as it is issued and delivered in a reasonable and professional manner. Any notice that is promptly delivered completely discharges any obligation of the endorser of the instrument.

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