8.3A-304 - A-304. Overdue instrument. - Virginia Statutes

§ 8.3A-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, ninety days after its date; or

(3) if the instrument is not a check, when the instrument has beenoutstanding 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 time the followingrules apply:

(1) If the principal is payable in installments and a due date has not beenaccelerated, the instrument becomes overdue upon default under the instrumentfor nonpayment of an installment, and the instrument remains overdue untilthe default is cured.

(2) If the principal is not payable in installments and the due date has notbeen accelerated, the instrument becomes overdue on the day after the duedate.

(3) If a due date with respect to principal has been accelerated, theinstrument becomes overdue on the day after the accelerated due date.

(c) Unless the due date of principal has been accelerated, an instrument doesnot become overdue if there is default in payment of interest but no defaultin payment of principal.

(Code 1950, § 6-408; 1964, c. 219, § 8.3-304; 1992, c. 693.)