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When is a notice of dishonor made?

  1. After a payment is refused on the due date

  2. When a payment is made in full

  3. Before the document is signed

  4. Once the document is acknowledged by a notary

The correct answer is: After a payment is refused on the due date

A notice of dishonor is made after a payment is refused on the due date, also known as the date that payment was required to be made. This means that option A is the only correct answer, as options B, C, and D all refer to events that happen before or after the due date and therefore are not considered to be a notice of dishonor. Option B refers to a payment being made in full, which does not involve a refusal or non-payment on the due date. Option C refers to the document being signed, which may or may not be related to a payment being made on the due date. Option D refers to the document being acknowledged by a notary, which is a separate event and does not necessarily involve a payment being made on the due date.