Definition of wrongful dishonor

failure to pay a check or draft properly endorsed and presented for payment. Under the Uniform Commercial Code (UCC), the payer bank has until midnight of the day after it receives a check to pay or dishonor it. A bank may return a check with a missing signature, altered date, and so on, without penalty. If, however, the drawee the person presenting the check) suffers financially becauseof the bank's refusal to honor an otherwise payable check, the bankmay be liable to its customer for damages. The customer must still be able to prove financial harm.