Also known as: arrears · in arrear · overdue · delinquent
Written by attorneys · grounded in primary & secondary sources — see below
A state in which a required payment on a debt or other obligation remains unpaid after its due date. The condition persists until the default is cured by full payment of the overdue amount. An instrument payable in installments becomes overdue upon the first uncured missed installment.
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Icarus Aviation sold a promissory note to Ike Ingram in exchange for goods. The note required monthly installments. Two payments had already been missed when Ike took the note. Because Ike lacked notice that the instrument was in arrears, he qualified as a holder in due course under the UCC.
Isaiah Ishikawa borrowed from Iris Energy under a note payable in quarterly installments. After missing the March payment, Isaiah made no further payments. The note became overdue on the day of the missed installment and remained in arrears until Isaiah cured the default.
Isabelle Inman issued a note to Ideal Solutions requiring annual principal payments plus quarterly interest. Isabelle paid each principal installment on time but missed two interest payments. The note did not become overdue because there was no default in principal.
Iain Irons leased space from Ironclad Industries. After three months Iain stopped paying rent. Ironclad sued for possession and the unpaid amounts. The court found Iain in arrears and entered judgment for the accumulated rent plus interest.
Isaac Irving obtained a mortgage from a bank. After losing his job he missed four monthly payments. The bank accelerated the loan because the debt was in arrears and initiated foreclosure proceedings.
After a divorce Ismael Ibrahim was ordered to pay monthly child support. He paid nothing for eight months. The court entered a judgment for the full amount of arrears plus interest and authorized wage withholding to collect the past-due sums.
An installment note becomes overdue upon the first uncured default in payment of an installment. The note remains overdue until the default is cured by payment of the missed amount.
No. Unless the due date of principal has been accelerated, an instrument does not become overdue if there is only a default in payment of interest.
…Clause and the Due Process Clause; and in Zablocki v. Redhail , 434 U.S. 374, where the Court invalidated a law barring fathers delinquent on child-support payments from marrying. Indeed, recognizing that new insights and societal understandings can reveal unjustified inequality within fundamental institutions that once passed…