When the holder of an instrument has presented it for payment or acceptance and it has then been refused, the negotiable instrument:
A) is considered overdue.
B) has been dishonored.
C) is considered unauthorized.
D) has been held to be irregular.

Question

Quizplus · Accepted Answer

A negotiable instrument has been dishonored when the holder has presented it for payment (or acceptance) and payment (or acceptance) has been refused.

When the Holder of an Instrument Has Presented It for Payment