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Wrongful Dishonor

wrongful dishonor n

: a wrongful refusal by a payor bank to honor an item that is properly payable [a payor bank is liable to its customer for damages proximately caused by the wrongful dishonor of an item "Uniform Commercial Code"]

Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.