(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) 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.
(3) If a due date with respect to principal has been accelerated, the instrument becomes overdue on the day after the accelerated due date.
Source: L. 94: Entire article R&RE, p. 855, § 1, effective January 1, 1995.
Under former Section 3-304(3)(c), a holder that took a demand note had notice that it was overdue if it was taken "more than a reasonable length of time after its issue." In substitution for this test, subsection (a)(3) requires the trier of fact to look at both the circumstances of the particular case and the nature of the instrument and trade usage. Whether a demand note is stale may vary a great deal depending on the facts of the particular case.
Structure Colorado Code
Title 4 - Uniform Commercial Code
Article 3 - Negotiable Instruments
Part 3 - Enforcement of Instruments
§ 4-3-301. Person Entitled to Enforce Instrument
§ 4-3-302. Holder in Due Course
§ 4-3-303. Value and Consideration
§ 4-3-305. Defenses and Claims in Recoupment
§ 4-3-306. Claims to an Instrument
§ 4-3-307. Notice of Breach of Fiduciary Duty
§ 4-3-308. Proof of Signatures and Status as Holder in Due Course
§ 4-3-309. Enforcement of Lost, Destroyed, or Stolen Instrument
§ 4-3-310. Effect of Instrument on Obligation for Which Taken
§ 4-3-311. Accord and Satisfaction by Use of Instrument
§ 4-3-312. Lost, Destroyed, or Stolen Cashier's Check, Teller's Check, or Certified Check