Failure by a promissory notes' maker to pay the amount due at maturity is known as:
A) Protesting a note.
B) Dishonoring a note.
C) Closing a note.
D) Depreciating a note.
E) Discounting a note.

Question

Quizplus · Accepted Answer

Dishonoring a note refers to when the maker of a promissory note fails to pay the amount due at maturity. This can lead to legal action by the holder of the note to collect the debt. Protesting a note refers to the formal process of recording and verifying the dishonor of a promissory note. Closing a note and depreciating a note are not relevant terms in this context, and discounting a note refers to the process of selling a note at a discount to a third party.

Failure by a Promissory Notes' Maker to Pay the Amount