Dishonor

In mercantile law and usage. To refuse or decline to accept a bill of exchange or to refuse or neglect to pay a blil or note at maturity. Shelton v. Braith-waite, 7 Mees. & W. 486; Brewster v. Arnold, 1 Wis. 276. A negotiable instrument is dishonored when it is either not paid or not accepted, according to its tenor, on presentment for that purpose, or without presentment, where that is excused. Civ. Code Cal. § 3141.

— Notice of dishonor. When a negotiable bill or note is dishonored by nonacceptance on presentment for acceptance, or by non-payment at its mafurity, it is the duty of the holder to give immediate notice of such dishonor to the drawer, if it be a bill, and to the indorsee, whether it be a bill or note. 2 Daniel, Neg. Inst. § 070.