O.C.G.A.
O.C.G.A.

O.C.G.A. § 11-3-304 (2019)

Overdue instrument

✓ O.C.G.A. — 2019 edition (Public.Resource.Org Release 73)
Code text and O.C.G.A. statutory annotations on this page reflect the 2019 Official Code of Georgia Annotated (Public.Resource.Org Release 73, 2019-08-21; public domain per Georgia v. Public.Resource.Org, 2020). The Syfert case-law annotations in Notes of Decisions, below, are current.
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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 which 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 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; or

(3) If a due date with respect to principal has been accelerated, the instrument becomes overdue on the day after the accelerated due date.

(c) Unless the due date of principal has been accelerated, an instrument does not become overdue if there is default in payment of interest but no default in payment of principal.

History

Code 1981, § 11-3-304, enacted by Ga. L. 1996, p. 1306, § 3.

Annotations

RESEARCH REFERENCES U.L.A. Uniform Commercial Code (U.L.A.) § 3304.

Notes of Decisions
Cited in 5 cases, 1995–2001 · leading case: Fedeli v. UAP/Ga. Ag. Chem., Inc., 514 S.E.2d 684 (Ga. Ct. App. 1999).
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Fedeli v. UAP/Ga. Ag. Chem., Inc., 514 S.E.2d 684 (Ga. Ct. App. 1999). · cites it 8× “” OCGA § 11-3-304 (6). A payee may be a holder in due course, provided that it meets the requirements set out in the statute.”
Dal-Tile Corp. v. Cash N' Go, Inc., 487 S.E.2d 529 (Ga. Ct. App. 1997). · cites it 4× “[1] The UCC definition of "good faith" applicable here is "honesty in fact in the conduct or transaction concerned." OCGA § 11-1-201(19).”
Southtrust Bank of Georgia v. Parker, 486 S.E.2d 402 (Ga. Ct. App. 1997). · cites it 2× ““Unlike those ‘personal’ defenses which the holder in due course takes free from, the real defenses are so quintessential to the obligation that even the very status of holder in due course does not freely elude the grasp of the defenses.”
Crawford v. Etheridge, 546 S.E.2d 551 (Ga. Ct. App. 2001). · cites it 2× “See OCGA § 11-3-304 (b) (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.”
Pecan Shoppe v. Bank of Dodge Cnty., 457 S.E.2d 223 (Ga. Ct. App. 1995). · cites it 2× “” While OCGA § 11-3-304 (2) indicates that a purchaser takes an instrument with notice of a claim against it when the purchaser knows that a fiduciary has negotiated the same to pay for a personal debt in breach of a fiduciary duty, it is unclear that the bank should here be…”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.