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Can you summarize MNST 336.3-304?
UNIFORM COMMERCIAL CODE > OVERDUE INSTRUMENT.
Short Summary
This legal document, governed by the Minnesota Statutes under the Uniform Commercial Code, specifically addresses the concept of overdue instruments. An instrument payable on demand becomes overdue at the earliest of three times: the day after demand for payment is duly made, 90 days after the date for checks, or when the instrument has been outstanding for an unreasonably long period of time considering the nature of the instrument and trade usage. For instruments payable at a definite time, different rules apply depending on whether the principal is payable in installments or not, and whether the due date has been accelerated. The document clarifies when an instrument becomes overdue in each scenario. It is important to note that 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. This legal provision was repealed in 1992.
Whom does it apply to?
Parties involved in commercial transactions
What does it govern?
Overdue instruments
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota