Question

Noting charges are paid when a bill is ____.

Options

• honoured

• dishonoured

•  renewed

• retired

Answer 1

Noting charges are paid when a bill is dishonoured.

Explanation:

In order to get an evidence of the dishonour of a bill, the drawer gets the bill notified in the Notary Public. Noting charges are paid to avail such service. Therefore, dishonour of bill requires payment of noting charges.

Hence, the correct answer is option (b).