This section is from the book "Elementary Banking", by John Franklin Ebersole. Also available from Amazon: Elementary Banking.
Formerly three "days of grace" were allowed to all persons obliged to pay notes - that is, three days beyond the time when one would expect them to become due. This has been abolished now in all or nearly all the States and an instrument matures on the date fixed. Bankers should become acquainted with the provisions of the law on this point in their own State. If a note is made payable a number of days after or from date, the day it was drawn is excluded in determining the due date of the note. If a note dated May 10 is payable thirty days after date, it is due June 9. Suppose June 9 falls on a Sunday or a legal holiday, then the note is due on the next business day. If the note had been dated May 10 and made payable one month from date, it would have been payable June 10. The presentment for payment must be made on the day the note is due and at a reasonable hour. If a note is issued reading "with interest," but without any provision as to the rate of interest, then the rate will be the legal rate provided by the State law. Students should learn the legal rate of the State in which their bank is located. If no part of the principal or interest of a note is paid within a certain time after maturity, it is said to be "outlawed" and cannot be collected. See the statute of limitations in your own State. In most jurisdictions, notes that are payable "on demand".do not draw interest before they are presented for payment (notes are not presented for "acceptance," as bills are) unless they contain an express provision providing for interest. However, after they have been presented for payment they draw the legal rate until paid, even though it has not been mentioned in the note. In some jurisdictions, however, it has been held that an obligation to pay money on demand is payable immediately, and that interest is recoverable from its date. When bills of notes are payable on demand, the payee or holder is entitled to payment upon delivery. But presentment must be made within a reasonable time after the note (or bill) is issued. The question as to what is a reasonable time is one which depends on the nature of the instrument, the usage of trade or business with respect to such instruments, and the facts of the particular case.