Definitions from Black's Law Dictionary: 2nd Edition and Ballentine's Law Dictionary as are available for each term in each dictionary.
  • Ballentine's Law Dictionary

    Refusal to accept a bill of exchange; refusal to pay negotiable paper. See 1 Wis. 264.

  • Black's Law Dictionary: 2nd Edition

    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.