The refusal to pay or accept an instrument when it becomes due is known as:
A)the shelter rule.
B)dishonor.
C)being overdue.
D)subject to claim or defense.

Question

Quizplus · Accepted Answer

Dishonor is the term used when a payment instrument such as a check, draft or promissory note is refused or not accepted when it becomes due. This can occur for a variety of reasons, such as insufficient funds, a missing signature or endorsement, or a discrepancy in the amount due.

The Refusal to Pay or Accept an Instrument When It