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Investments glossary

Wrongful Dishonor

Wrongful dishonor refers to a bank’s failure to honor a valid negotiable instrument, such as a check or draft that has been presented to it for payment. If the check is valid and there are sufficient funds in the account to cover it, a bank’s failure to honor it within the time period stipulated by the Uniform Commercial Code (UCC) would constitute wrongful dishonor.

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