§12A-3-304. Overdue Instrument.
245 words·~1 min read·
/ok/title-12a-uniform-commercial-code/12a-3-304·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
OVERDUE INSTRUMENT
(a)An instrument payable on demand becomes overdue at the earliest of the following times:
(1)on the day after the day demand for payment is duly
made;
(2)if the instrument is a check, ninety
(90)days after
its date; or
(3)if the instrument is not a check, when the instrument
has been outstanding for a period of time after its
date which is unreasonably long under the
circumstances of the particular case in light of the
nature of the instrument and usage of the trade.
(b)With respect to an instrument payable at a definite time the following rules apply:
(1)If the principal is payable in installments and a due
date has not been accelerated, the instrument becomes
overdue upon default under the instrument for
nonpayment of an installment, and the instrument
remains overdue until the default is cured;
(2)If the principal is not payable in installments and
the due date has not been accelerated, the instrument
becomes overdue on the day after the due date; and
(3)If a due date with respect to principal has been
accelerated, the instrument becomes overdue on the day
after the accelerated due date.
(c)Unless the due date of principal has been accelerated, an instrument does not become overdue if there is default in payment of interest but no default in payment of principal. Laws 1961, p. 108, § 3-304; Laws 1991, c. 117, § 55, eff. Jan. 1, 1992.