What is a dishonored check?

A check is dishonored either by non-payment or non-acceptance.

Dishonor by non-payment occurs when (a) the check is duly presented for payment and payment is refused or cannot be obtained; or (b) presentment is excused and the check is overdue and unpaid.

Dishonor by non-acceptance happens when (a) the check is duly presented for acceptance, and such an acceptance as is prescribed by law is refused or cannot be obtained; or (b) presentment for acceptance is excused and the check is not accepted.

Source: Sec. 32, Chapter 5 of GAM for NGAs Volume I

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