Also known as: due days · due date
Written by attorneys · grounded in primary & secondary sources — see below
The date specified for payment of principal on a negotiable instrument. Default in payment on that date triggers the instrument becoming overdue under rules that distinguish between installment and non-installment obligations.
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Denise Donovan signed a promissory note to Duffy Construction calling for twelve monthly installments of principal. When Denise missed the fourth installment payment, the note became overdue that day. Duffy Construction could then treat the instrument as overdue for purposes of enforcement until Denise cured the missed payment.
Dolores Diaz issued a note to Drake Logistics requiring payment of principal on a single date plus monthly interest. Dolores paid all principal when due but missed one interest payment. The note did not become overdue because the principal remained current and had not been accelerated.
Destiny Davis borrowed from Decker Electronics under a note due in full on March 15. When March 16 arrived without payment, the instrument became overdue. Decker Electronics could immediately pursue holder rights associated with an overdue instrument.
Demetrius Douglas defaulted on a covenant in his note to Dominion Capital, prompting acceleration of the principal due date to April 1. After April 2 passed without payment, the instrument became overdue under the accelerated schedule.
Diane Dawson missed an installment on her note to a lender but cured the default two weeks later by paying the missed amount plus interest. The instrument ceased to be overdue once the cure occurred and the remaining installments resumed on schedule.
Daphne Doyle's note to a bank contained an acceleration clause triggered by missed interest. After the bank accelerated, the new principal due date passed without payment of principal. The instrument then became overdue the following day.
The instrument becomes overdue upon default in payment of an installment and remains overdue until the default is cured.
Supporting sources
No. Unless the due date of principal has been accelerated, default in interest payments without default in principal does not cause the instrument to become overdue.
Supporting sources
If a due date for principal is accelerated, the instrument becomes overdue on the day after the accelerated due date.
Supporting sources
…a maternity leave policy that required pregnant schoolteachers to take unpaid leave beginning five months before their expected due date. The school board argued that some teachers became physically incapable of performing adequately in the latter stages of their pregnancy, and we accepted this justification for purposes of…