What is dishonor in connection with a negotiable instrument?
A) an instrument being created in connection with a fraudulent transaction
B) any potential transferee refusing to accept the instrument
C) the refusal of the maker or drawer to pay the instrument when it is presented for payment
D) the transfer of an order instrument without the proper indorsement
E) an instrument being created without evidence of value

Question

Quizplus · Accepted Answer

Dishonor in connection with a negotiable instrument refers to the refusal of the maker or drawer to pay the instrument when it is presented for payment. This can occur for various reasons such as insufficient funds, a stop payment order, or a dispute between parties.

What Is Dishonor in Connection with a Negotiable Instrument