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U.C.C. - ARTICLE 3 - NEGOTIABLE INSTRUMENTS
..PART 3. ENFORCEMENT OF INSTRUMENTS

§ 3-304. 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, 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.
    • (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.
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© Copyright 2005 by The American Law Institute and the National Conference of Commissioners on Uniform State Laws; reproduced, published and distributed with the permission of the Permanent Editorial Board for the Uniform Commercial Code for the limited purposes of study, teaching, and academic research.