When is a time instrument not considered overdue?
A)A time instrument is always overdue upon any missed payment.
B)When a party misses an installment payment on the principal.
C)When a party misses an interest payment on the instrument.
D)When a party fails to make a lump-sum payment by the due date.
E)When a party does not make payment on either the principal or interest.

Question

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A)Most of the rules regarding whether a time instrument is overdue depend on its
payment structure.Overdue status of installments depends on whether payment applies to the principal or the interest.If a party misses payment of an installment of the principal,the instrument is overdue until this installment is paid [UCC
3-304b)1)].If a party misses a payment of interest on this instrument,the instrument is not overdue [UCC 3-304c)].
B)Most of the rules regarding whether a time instrument is overdue depend on its payment structure.Overdue status of installments depends on whether payment applies to the principal or the interest.If a party misses payment of an installment of the principal,the instrument is overdue until this installment is paid [UCC
3-304b)1)].If a party misses a payment of interest on this instrument,the instrument is not overdue [UCC 3-304c)].
C)Most of the rules regarding whether a time instrument is overdue depend on its payment structure.Overdue status of installments depends on whether payment applies to the principal or the interest.If a party misses payment of an installment of the principal,the instrument is overdue until this installment is paid [UCC
3-304b)1)].If a party misses a payment of interest on this instrument,the instrument is not overdue [UCC 3-304c)].

When Is a Time Instrument Not Considered Overdue