§ 25-3-304. Overdue instrument. - North Carolina Statutes

§25‑3‑304.  Overdue instrument.

(a)        An instrumentpayable on demand becomes overdue at the earliest of the following times:

(1)        On the day after theday demand for payment is duly made;

(2)        If the instrument isa check, 90 days after its date; or

(3)        If the instrument isnot a check, when the instrument has been outstanding for a period of timeafter its date which is unreasonably long under the circumstances of theparticular case in light of the nature of the instrument and usage of thetrade.

(b)        With respect to aninstrument payable at a definite time the following rules apply:

(1)        If the principal ispayable in installments and a due date has not been accelerated, the instrumentbecomes 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 isnot payable in installments and the due date has not been accelerated, theinstrument becomes overdue on the day after the due date.

(3)        If a due date withrespect to principal has been accelerated, the instrument becomes overdue onthe day after the accelerated due date.

(c)        Unless the due dateof principal has been accelerated, an instrument does not become overdue ifthere is default in payment of interest but no default in payment of principal.(1899, c. 733, ss. 45, 52, 53, 55, 56; Rev., ss. 2194, 2201, 2202,2204, 2205; C.S., ss. 3026, 3033, 3034, 3036, 3037; 1965, c. 700, s. 1; 1995,c. 232, s. 1.)