Legal Definitions - note of protest

A note of protest is an initial, informal record created by a notary public. It serves as an official acknowledgment that a negotiable instrument, such as a check, promissory note, or bill of exchange, was presented for payment or acceptance but was refused. This preliminary memo documents the dishonor of the instrument and is a foundational step before a more formal "protest" document is issued, which provides conclusive evidence of the refusal.

• Example 1: Business Check Dishonored

  Imagine a small business, "Green Gardens Inc.," receives a large check from a client for landscaping services. When Green Gardens deposits the check, their bank attempts to process it, but the client's bank refuses payment, stating there are insufficient funds in the client's account. To formally document this refusal and protect their rights, Green Gardens Inc. might ask a notary public to create a note of protest. This initial notarial record confirms that the check was presented for payment and subsequently dishonored, providing official evidence for future collection efforts or legal action.

• Example 2: Unpaid Promissory Note

  Consider a situation where an individual, Ms. Chen, loaned money to a friend, Mr. Davis, with a formal promissory note specifying that the full amount was due on October 1st. On the due date, Ms. Chen presents the promissory note to Mr. Davis, but he fails to make the payment as promised. To officially record this non-payment, Ms. Chen could engage a notary public to prepare a note of protest. This document would formally state that the promissory note was presented for payment on the specified date, and payment was not received, establishing a clear record of Mr. Davis's default.

• Example 3: Refusal to Accept a Bill of Exchange

  An international trading company, "Global Exports," issues a bill of exchange to a bank in another country, instructing the bank to pay a third-party supplier, "Overseas Parts Ltd.," in 90 days. When Overseas Parts Ltd. presents the bill to the designated bank for acceptance (the bank's formal promise to pay in the future), the bank declines to accept it. Overseas Parts Ltd. would then request a notary to prepare a note of protest. This initial notarial record would formally state that the bill of exchange was presented to the bank for acceptance, and the bank refused to accept it, which is crucial for Overseas Parts Ltd. to pursue claims against Global Exports or other parties involved in the transaction.