If a negotiable instrument is presented for payment and is neither paid nor accepted, what action is usually recommended?

In the context of a negotiable instrument that has been presented for payment but is neither paid nor accepted, performing a protest is a critical action that is commonly recommended in such situations. A protest serves as a formal declaration that the instrument was presented for payment, but payment was refused. It is an important step to protect the rights of the holder of the instrument, particularly if they need to pursue legal action or seek recourse against the parties responsible.

By protesting the instrument, the holder creates an official record that they followed the necessary steps to attempt collection. This can be particularly significant if there are subsequent disputes, as it provides evidence of diligence on the part of the holder.

Though the other options involve potential actions one could take, none carry the same legal weight or importance as performing a protest. Informing the signer or reporting to authorities may be relevant in certain scenarios, but they do not establish the same formal record as a protest. Avoiding protests would mean foregoing a crucial legal protection that supports the holder’s position in case of default or non-payment.