Question

Danny Default is the maker of a note to the Long-Stay Hotel for his stay there. On the note's maturity date, Danny has not paid the note. Now the note is called a:

Answer 1

Danny Default's unpaid note to the Long-Stay Hotel would be considered a dishonored note, which is a promissory note not paid by the maker on the maturity date.

Step-by-step explanation:

If Danny Default is the maker of a note to the Long-Stay Hotel and has not paid on the note's maturity date, the note can now be referred to as a dishonored note. A dishonored note is a promissory note that the maker has failed to pay on time. This creates a default situation, where the holder (in this case, Long-Stay Hotel) may take certain legal actions to enforce payment. The process following a dishonor may involve presenting the note for payment to a bank, sending a notice of dishonor to the maker, and potentially initiating legal proceedings for the recovery of the debt.