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To refuse to accept or pay a draft or to pay a promissory note when duly presented. An instrument is dishonored when a necessary or optional presentment is made and due acceptance or payment is refused, or cannot be obtained within the prescribed time, or in case of bank collections, the instrument is seasonably returned by the midnight deadline; or presentment is excused and the instrument is not duly accepted or paid. Includes the insurer of a letter of credit refusing to pay or accept a draft or demand for payment.
As respects the flag, to deface or defile, imputing a lively sense of shaming or an equivalent acquiescent callousness.
v. to refuse to pay the face amount of a check or the amount due on a promissory note.
TO DISHONOR, contr. This term is applied to the nonfulfillment of commercial
engagements. To dishonor a bill of exchange, or a promissory note, is to
refuse or neglect to pay it at maturity.
2. The holder is bound to give notice to the parties to such instrument of its dishonor, and his laches will discharge the indorsers. Chit. on Bills, 394, 395, 256 to 278.