When a negotiable bill or note is dishonored by nonacceptance onpresentment for acceptance, or by non-payment at its maturity, it is the duty of theholder to give immediate notice of such dishonor to the drawer, if it be a bill, and to theindorser, whether it be a bill or note. 2 Daniel, Neg. Inst.

More On This Topic

Link to This Definition
Did you find this definition of NOTICE OF DISHONOR helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary