§ 6A-3-304 - Overdue instrument. - Rhode Island Statutes

SECTION 6A-3-304

   § 6A-3-304  Overdue instrument. – (a) An instrument payable on demand becomes overdue at the earliest of thefollowing 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 hasbeen outstanding for a period of time after its date which is unreasonably longunder the circumstances of the particular case in light of the nature of theinstrument and usage of the trade.

   (b) With respect to an instrument payable at a definite timethe following rules apply:

   (1) If the principal is payable in installments and a duedate has not been accelerated, the instrument becomes overdue upon defaultunder the instrument for nonpayment of an installment, and the instrumentremains overdue until the default is cured.

   (2) If the principal is not payable in installments and thedue date has not been accelerated, the instrument becomes overdue on the dayafter the due date.

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

   (c) Unless the due date of principal has been accelerated, aninstrument does not become overdue if there is default in payment of interestbut no default in payment of principal.