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90_SB0710eng
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
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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
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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), an
9 action to enforce the obligation of a party to pay a note
10 payable at a definite time must be commenced within 6 years
11 after the due date or dates stated in the note or, if a due
12 date is accelerated, within 6 years after the accelerated due
13 date.
14 (b) (Blank). Except as provided in subsection (d) or
15 (e), if demand for payment is made to the maker of a note
16 payable on demand, an action to enforce the obligation of a
17 party to pay the note must be commenced within 6 years after
18 the demand. If no demand for payment is made to the maker,
19 an action to enforce the note is barred if neither principal
20 nor interest on the note has been paid for a continuous
21 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
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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.)