Texas Business & Commerce Code

§ 3.304 — OVERDUE INSTRUMENT

BC § 3.304Title 1. UNIFORM COMMERCIAL CODE · Ch. 3. NEGOTIABLE INSTRUMENTS · Art. C. ENFORCEMENT OF INSTRUMENTS

Statute text

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(a)An instrument payable on demand becomes overdue at the earliest of the following 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 has been outstanding for a period of time after its date that is unreasonably long under the circumstances of the particular case in light of the nature of the instrument and usage of the trade.

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

(1)if the principal is payable in installments and a due date has not been accelerated, the instrument becomes overdue on default under the instrument for nonpayment of an installment, and the instrument remains overdue until the default is cured;

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Legislative history

Amended by Acts 1995, 74th Leg., ch. 921, Sec. 1, eff. Jan. 1, 1996.