Dishonor is also called dishonor. When the holder of a bill of exchange requests payment or acceptance from the payee in accordance with the provisions of the Bills of Exchange Law, but does not receive payment or acceptance, this behavior is called dishonor or dishonor. Since the refusal to accept indicates that the payee refuses to bear the payment obligation of the bill of exchange, the holder does not need to wait until the due date of the bill of exchange to make a payment request. The refusal to accept itself indicates a refusal to pay.
Dishonor actually includes two situations: dishonor by non-payment and dishonor by non-acceptance. In addition, when the payee escapes, disappears, dies, goes bankrupt, or is ordered to terminate business activities due to violation of the law, the holder is unable to obtain payment or acceptance, which is also a dishonor. When dishonoring, the party refusing to pay is usually required to issue a dishonor certificate.
A dishonor certificate refers to a document stipulated by law that has the effect of proving the fact that the holder has refused to present the bill for acceptance or payment in accordance with the law. The methods of proving the refusal of acceptance or payment are not exactly the same in different countries. The negotiable instruments laws of most countries stipulate that a protest certificate must be issued by a certain authority to serve as a legal form of proof, generally issued by a legal notary at the place of protest. If there is no legal notary at the place of protest, a protest certificate can be issued by a local celebrity in front of two witnesses. In my country, a notary office can be asked to issue a protest certificate.
Obtaining or issuing a protest certificate is one of the important procedures for exercising and preserving the right of recourse, but international practice and the negotiable instruments laws of most countries stipulate that in the following circumstances, it is not necessary to issue or obtain a protest certificate or replace a protest certificate with other legal proof: ① The agreement on the exemption of the protest certificate; ② The exemption of the protest certificate due to force majeure and other events; ③ The replacement of the protest certificate with other legal proof.