State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Enrolled ][ House Amendment 001 ]
[ House Amendment 002 ]

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
SB710 Engrossed                               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
SB710 Engrossed             -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),  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
SB710 Engrossed             -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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