Montana Code 30-3-304. Overdue instrument
30-3-304. Overdue instrument. (1) An instrument payable on demand becomes overdue at the earliest of the following times:
Terms Used In Montana Code 30-3-304
- Usage: means a reasonable and lawful public custom concerning transactions of the same nature as those which are to be affected thereby, existing at the place where the obligation is to be performed, and either known to the parties or so well established, general, and uniform that the parties must be presumed to have acted with reference thereto. See Montana Code 1-1-206
(a)on the day after the day demand for payment is duly made;
(b)if the instrument is a check, 90 days after its date; or
(c)if the instrument is not a check, when the instrument has been outstanding for a period of time after its date that is unreasonably long under the circumstances of the particular case in light of the nature of the instrument and trade usage.
(2)With respect to an instrument payable at a definite time, the following rules apply:
(a)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.
(b)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.
(c)If a due date with respect to principal has been accelerated, the instrument becomes overdue on the day after the accelerated due date.
(3)Unless the due date of principal has been accelerated, an instrument does not become overdue if there is a default in payment of interest but no default in payment of principal.