Nebraska Uniform Commercial Code 3-118

UCC 3-118

3-118.

Statute of limitations.

(a) Except as provided in subsection (e), an action to enforce the obligation of a party to pay a note payable at a definite time must be commenced within six years after the due date or dates stated in the note or, if a due date is accelerated, within six years after the accelerated due date.

(b) Except as provided in subsection (d) or (e), if demand for payment is made to the maker of a note payable on demand, an action to enforce the obligation of a party to pay the note must be commenced within six years after the demand. If no demand for payment is made to the maker, an action to enforce the note is barred if neither principal nor interest on the note has been paid for a continuous period of ten years.

(c) Except as provided in subsection (d), an action to enforce the obligation of a party to an unaccepted draft to pay the draft must be commenced within three years after dishonor of the draft or ten years after the date of the draft, whichever period expires first.

(d) An action to enforce the obligation of the acceptor of a certified check or the issuer of a teller's check, cashier's check, or traveler's check must be commenced within three years after demand for payment is made to the acceptor or issuer, as the case may be.

(e) Subject to the provisions of section 25-227, an action to enforce the obligation of a party to a certificate of deposit to pay the instrument must be commenced within six years after demand for payment is made to the maker, but if the instrument states a due date and the maker is not required to pay before that date, the six-year period begins when a demand for payment is in effect and the due date has passed.

(f) An action to enforce the obligation of a party to pay an accepted draft, other than a certified check, must be commenced (i) within six years after the due date or dates stated in the draft or acceptance if the obligation of the acceptor is payable at a definite time, or (ii) within six years after the date of the acceptance if the obligation of the acceptor is payable on demand.

(g) Unless governed by other law regarding claims for indemnity or contribution, an action (i) for conversion of an instrument, for money had and received, or like action based on conversion, (ii) for breach of warranty, or (iii) to enforce an obligation, duty, or right arising under this article and not governed by this section must be commenced within three years after the cause of action accrues.

Annotations

  • Pursuant to subsection (g) of this section, in the absence of fraudulent concealment by the defendant, the discovery rule does not toll the statute of limitations for claims involving negotiable instruments under the Uniform Commercial Code. Mandolfo v. Mandolfo, 281 Neb. 443, 796 N.W.2d 603 (2011).

  • Under former section 3-122, a cause of action accrues against a maker of a time instrument on the day after maturity and no demand is necessary. Nebraska State Bank v. Dudley, 194 Neb. 1, 229 N.W.2d 559 (1975).

  • Under former section 3-122, on promissory notes payable on demand, the period of limitations runs from the date of their making. Degmetich v. Beranek, 188 Neb. 659, 199 N.W.2d 8 (1972).

  • Pursuant to subsection (b) of this section, an action to enforce a demand note that is a negotiable instrument is barred when 6 years have passed since a demand for payment was made or, if no demand for payment was made, neither principal nor interest has been paid for a continuous 10-year period. Emerson v. Zagurski, 3 Neb. App. 658, 531 N.W.2d 237 (1995).