11-3-304. Overdue instrument.

An instrument payable on demand becomes overdue at the earliest of the following times:#

1. (1)

   On the day after the day demand for payment is duly made;#

2. (2)

   If the instrument is a check, 90 days after its date; or#

3. (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.#

With respect to an instrument payable at a definite time the following rules apply:#

1. (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. (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; or#

3. (3)

   If a due date with respect to principal has been accelerated, the instrument becomes overdue on the day after the accelerated due date.#

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.#