Asked by sonia umezurike on Jun 29, 2024
Verified
In which of the following situations is an instrument termed as overdue?
A) Where a check was made out 60 days ago.
B) Where there is a default in payment of interest on a note,but not in the payment of the principal.
C) Where the principal on a note is due in installments and an installment has not been paid.
D) Where a note dated January 1 is payable "30 days after date" and is paid on January 31.
Overdue
Overdue signifies being past the time or date by which a task, obligation, or payment was due to be completed or made.
Principal
In finance, the original sum of money borrowed or invested, excluding any interest or dividends. In law, the primary party who authorizes another (the agent) to act on their behalf.
Installments
Payments divided over a period of time for a debt or purchase, rather than paying the total amount upfront.
- Understand the situations in which a negotiable instrument is deemed to be overdue.
Verified Answer
ZK
Zybrea KnightJul 06, 2024
Final Answer :
C
Explanation :
In the context of overdue instruments,Revised Article 3 states that if the principal is due in installments and a due date has not been accelerated,the instrument is overdue upon default for nonpayment of an installment and remains overdue until the default is cured.
Learning Objectives
- Understand the situations in which a negotiable instrument is deemed to be overdue.