Notice Of Dishonor

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.

BREAKING DOWN '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.

RELATED TERMS
  1. Dishonor

    The action of refusing to fulfill contractual obligations or ...
  2. Wrongful Dishonor

    A bank's failure to honor a valid negotiable instrument such ...
  3. Notice To Creditors

    A public notice to the creditors and debtors of an estate. The ...
  4. Delivery Notice

    A notice written by the holder of the short position in a futures ...
  5. Notice Of Default

    A public notice filed with a court stating that a mortgage borrower ...
  6. Notice Of Withdrawal

    A notice given to a bank by a depositor. As its name implies, ...
Related Articles
  1. Investing Basics

    Understanding Financial Instruments

    Financial instrument is a general term used to describe a monetary asset.
  2. Personal Finance

    What's a Bank Draft?

    A bank draft is a type of check. The bank guarantees payment, making it a more attractive option for the check recipient.
  3. Investing

    Arbitrage

    Learn more about this trade that profits from price differences between financal instruments and markets.
  4. Professionals

    Get Noticed, Get Hired

    Make sure your resume stands out among the crowd.
  5. Bonds & Fixed Income

    Debentures

    Learn more about this type of debt instrument.
  6. Investing

    What are Debt Instruments?

    A debt instrument is a documented financial obligation that enables the issuer to raise funds by borrowing money and repaying it in the future.
  7. Savings

    Top 5 Reasons Banks Won't Cash Your Check

    Learn the top reasons that a bank won't cash your check, and find out what steps you can take to prevent those scenarios from happening.
  8. Professionals

    Other Money Market Instruments

    Government Money Market Instruments The Government and many of its agencies will go to the money market to obtain short- term funds. Some of the government money market instruments include: Treasury ...
  9. Professionals

    American Vs. European Exercise

    There are two styles of options that trade in the U.S.: American and European. An American style option may be exercised at any time, by the holder, during the life of the contract. A European ...
  10. Professionals

    Offsetting Contracts, Settlements And Delivery

    Offsetting Contracts, Settlements And Delivery
RELATED FAQS
  1. How can I cancel a bank draft that I have purchased?

    Learn about what a bank draft is and how it works, the circumstances under which a bank draft may be cancelled, and what ... Read Answer >>
  2. After a federal covered security has filed notice with the Administrator for an ...

    The correct answer is b. Notice filings are required under the Act for both initial and secondary offerings of federal covered ... Read Answer >>
  3. Why are insurance companies and pension funds considered financial instruments?

    Find out why insurance companies and pension funds are considered carriers of financial instruments, and what role they play ... Read Answer >>
  4. Is a person registered for Financial Instruments Business eligible to conduct both ...

    Explore Japan's 2006 Financial Instruments and Exchange Law, and understand how the law affects investment services regulation. Read Answer >>
  5. Who uses bills of exchange?

    Find out who uses bills of exchange, why they are important in international trade and what happens when a bill is traded ... Read Answer >>
  6. What are the SEC regulations regarding stock splits?

    Learn what SEC regulations govern stock splits and reverse stock splits, and understand what type of notice must be given ... Read Answer >>
Hot Definitions
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  3. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  4. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  5. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  6. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
Trading Center