§ 26-1-3.1-304 — Overdue instrument

Indiana § 26-1-3.1-304

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 3.1: 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, 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.
(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

As added by P.L.222-1993, SEC.5.