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Refusal by a bank to grant credit, usually because of the applicants financial history, or refusal to accept a security presented to complete a trade, usually because of a lack of proper endorsements or violation of rules of a firm.


1. A bank's refusal to grant a line of credit. This often applies to the refusal to grant a mortgage loan to an uncreditworthy person or a business loan to someone without a proper business plan.

2. An investor's refusal to accept a security presented to him/her/it. Reasons for this include suspicion of fraud or improperly filled-out forms.

3. Refusal to provide insurance coverage because the insurance company believes that the claim describes a service or situation that the policy does not cover.


The refusal to accept a security that has been delivered by a customer or broker. A questionable certificate or an improper endorsement are reasons for rejection.