If a negotiable instrument is not accepted when presented, if it is not paid when presented for payment at maturity, or if presentment is excused or waived and the instrument is past due and unpaid, then it is considered:
A) ineligible.
B) defunct.
C) dishonored.
D) abandoned.

Question

Quizplus · Accepted Answer

A negotiable instrument is considered dishonored if it is not accepted or paid when presented or if it is past due and unpaid. This means that the issuer or maker has failed to meet their obligations under the instrument, and it may have legal consequences. The other options, ineligible, defunct, and abandoned, do not accurately describe the status of a dishonored negotiable instrument.

If a Negotiable Instrument Is Not Accepted When Presented, If