(1) |
An instrument payable on demand becomes overdue at the earliest of the following times:
(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 which is unreasonably long under the circumstances of the particular case in light of the nature of the instrument and usage of the trade. |
|
(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 default in payment of interest but no default in payment of principal. |
Repealed and Re-enacted by Chapter 237, 1993 General Session