NOTICE OF DISHONOR

by • 17/06/2011 • 2nd year BankingComments (0)529

Once the bill is dishonored all the endorsers and the drawer must be informed abut it, or these parties will not be held responsible to the holder.

The rules of notice are as follows:

  • The holder must issues notices to the parties involved.
  • Notice of dishonor must be served within a reasonable time.
  • The endorser on receiving the notice must notify it to the previous endorser.
  • Notice may be oral or written.
  • In case of death, the notice must be served to the heir.
  • In case of bankruptcy the notice should be served to the official assignee.
  • Notice can be issued by the agent.
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