When the primary party refuses to pay an instrument according to its terms, said party is required to give:
A) notice of nonpayment.
B) notice of dishonor.
C) notice of denial.
D) secondary party notice.

Question

Quizplus · Accepted Answer

When the primary party refuses to pay an instrument according to its terms, it is necessary to give notice of dishonor to all the parties who have a right to know. Notice of dishonor is a written or verbal notification provided by the holder or an authorized party to inform the party responsible for payment that the instrument was not honored due to non-payment or some other reason.

When the Primary Party Refuses to Pay an Instrument According