§ 4-3-304 — Overdue instrument

Colorado § 4-3-304

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Negotiable Instruments

Text

(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.

Legislative History

Source: L. 94: Entire article R&RE, p. 855, � 1, effective January 1, 1995.