400.3-304. Overdue instrument. - Missouri Statutes

Overdue instrument.

400.3-304. (a) An instrument payable on demand becomesoverdue at the earliest of the following times:

(1) on the day after the day demand for payment is dulymade;

(2) if the instrument is a check, 90 days after its date;or

(3) if the instrument is not a check, when the instrumenthas been outstanding for a period of time after its date which isunreasonably long under the circumstances of the particular casein light of the nature of the instrument and usage of the trade.

(b) With respect to an instrument payable at a definitetime the following rules apply:

(1) If the principal is payable in installments and a duedate has not been accelerated, the instrument becomes overdueupon default under the instrument for nonpayment of aninstallment, and the instrument remains overdue until the defaultis cured.

(2) If the principal is not payable in installments and thedue date has not been accelerated, the instrument becomes overdueon the day after the due date.

(3) If a due date with respect to principal has beenaccelerated, the instrument becomes overdue on the day after theaccelerated due date.

(c) Unless the due date of principal has been accelerated,an instrument does not become overdue if there is default inpayment of interest but no default in payment of principal.

(L. 1963 p. 503 § 3-304, A.L. 1992 S.B. 448)