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|[ Engrossed ]||[ Enrolled ]||[ House Amendment 001 ]|
|[ House Amendment 002 ]|
90_SB0710 735 ILCS 5/13-206 from Ch. 110, par. 13-206 810 ILCS 5/3-118 from Ch. 26, par. 3-118 Amends the Code of Civil Procedure. Provides that a cause of action on a promissory note with a due date accrues on the due date or the date to which the due date is accelerated. Provides that an action to enforce an obligation to pay a demand promissory note must be commenced within 10 years after the demand and provides that an action is barred if no demand is made and neither principal nor interest has been paid during a 10-year period. Amends the Uniform Commercial Code by eliminating language setting forth the statute of limitations on notes payable at a definite time and notes payable on demand. LRB9002813WHmgA LRB9002813WHmgA 1 AN ACT to amend named Acts concerning actions on certain 2 notes. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Code of Civil Procedure is amended by 6 changing Section 13-206 as follows: 7 (735 ILCS 5/13-206) (from Ch. 110, par. 13-206) 8 Sec. 13-206. Ten year limitation. Except as provided in 9 Section 2-725 of the "Uniform Commercial Code", actions on 10 bonds, promissory notes, bills of exchange, written leases, 11 written contracts, or other evidences of indebtedness in 12 writing, shall be commenced within 10 years next after the 13 cause of action accrued; but if any payment or new promise to 14 pay has been made, in writing, on any bond, note, bill, 15 lease, contract, or other written evidence of indebtedness, 16 within or after the period of 10 years, then an action may be 17 commenced thereon at any time within 10 years after the time 18 of such payment or promise to pay. For purposes of this 19 Section, with regard to promissory notes dated on or after 20 the effective date of this amendatory Act of 1997, a cause of 21 action on a promissory note payable at a definite date 22 accrues on the due date or date stated in the promissory note 23 or the date upon which the promissory note is accelerated. 24 With respect to a demand promissory note dated on or after 25 the effective date of this amendatory Act of 1997, if a 26 demand for payment is made to the maker of the demand 27 promissory note, an action to enforce the obligation of a 28 party to pay the demand promissory note must be commenced 29 within 10 years after the demand. An action to enforce a 30 demand promissory note is barred if neither principal nor 31 interest on the demand promissory note has been paid for a -2- LRB9002813WHmgA 1 continuous period of 10 years and no demand for payment has 2 been made to the maker during that period. 3 (Source: P.A. 82-280.) 4 Section 10. The Uniform Commercial Code is amended by 5 changing Section 3-118 as follows: 6 (810 ILCS 5/3-118) (from Ch. 26, par. 3-118) 7 Sec. 3-118. Statute of limitations. 8 (a) (Blank).
Except as provided in subsection (e), an9 action to enforce the obligation of a party to pay a note10 payable at a definite time must be commenced within 6 years11 after the due date or dates stated in the note or, if a due12 date is accelerated, within 6 years after the accelerated due13 date.14 (b) (Blank). Except as provided in subsection (d) or15 (e), if demand for payment is made to the maker of a note16 payable on demand, an action to enforce the obligation of a17 party to pay the note must be commenced within 6 years after18 the demand. If no demand for payment is made to the maker,19 an action to enforce the note is barred if neither principal20 nor interest on the note has been paid for a continuous21 period of 10 years.22 (c) Except as provided in subsection (d), an action to 23 enforce the obligation of a party to an unaccepted draft to 24 pay the draft must be commenced within 3 years after dishonor 25 of the draft or 10 years after the date of the draft, 26 whichever period expires first. 27 (d) An action to enforce the obligation of the acceptor 28 of a certified check or the issuer of a teller's check, 29 cashier's check, or traveler's check must be commenced within 30 3 years after demand for payment is made to the acceptor or 31 issuer, as the case may be. 32 (e) An action to enforce the obligation of a party to a -3- LRB9002813WHmgA 1 certificate of deposit to pay the instrument must be 2 commenced within 6 years after demand for payment is made to 3 the maker, but if the instrument states a due date and the 4 maker is not required to pay before that date, the 6-year 5 period begins when a demand for payment is in effect and the 6 due date has passed. 7 (f) An action to enforce the obligation of a party to 8 pay an accepted draft, other than a certified check, must be 9 commenced (i) within 6 years after the due date or dates 10 stated in the draft or acceptance if the obligation of the 11 acceptor is payable at a definite time, or (ii) within 6 12 years after the date of the acceptance if the obligation of 13 the acceptor is payable on demand. 14 (g) Unless governed by other law regarding claims for 15 indemnity or contribution, an action (i) for conversion of an 16 instrument, for money had and received, or like action based 17 on conversion, (ii) for breach of warranty, or (iii) to 18 enforce an obligation, duty, or right arising under this 19 Article and not governed by this Section must be commenced 20 within 3 years after the cause of action accrues. 21 (Source: P.A. 87-582; 87-1135.)
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