In what scenario would a check be referred to as 'dishonored'?

A check is referred to as 'dishonored' when it cannot be cashed due to issues such as insufficient funds in the account of the check writer. This scenario indicates that the bank refuses to honor the check because it cannot draw the necessary funds to complete the transaction. Dishonor can also occur for various other reasons such as a stopped payment or a closed account, but the essence remains that the check lacks the necessary backing to be processed successfully.

In contrast, the other options represent situations that do not align with the definition of a dishonored check. A void check is one that has been marked as no longer valid, usually by the maker. An old check, typically over six months, might be stale but does not inherently constitute dishonor; banks may still process it depending on their policies. Lastly, a check issued without a signature is invalid by nature, but it is not considered 'dishonored' since it never met the basic requirements to be honored in the first place. Therefore, the situation of insufficient funds directly corresponds to the term 'dishonored.'