§ 25-3-118. Statute of limitations. - North Carolina Statutes

§ 25‑3‑118. Statute of limitations.

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

(b)        Except as providedin subsection (d) or (e) of this section, if demand for payment is made to themaker of a note payable on demand, an action to enforce the obligation of aparty to pay the note must be commenced within six years after the demand. Ifno demand for payment is made to the maker, an action to enforce the note isbarred if neither principal nor interest on the note has been paid for acontinuous period of 10 years.

(c)        Except as providedin subsection (d) of this section, an action to enforce the obligation of aparty to an unaccepted draft to pay the draft must be commenced within threeyears after dishonor of the draft or 10 years after the date of the draft,whichever period expires first.

(d)        An action toenforce the obligation of the acceptor of a certified check or the issuer of ateller's check, cashier's check, or traveler's check must be commenced withinthree years after demand for payment is made to the acceptor or issuer, as thecase may be.

(e)        An action toenforce the obligation of a party to a certificate of deposit to pay theinstrument must be commenced within six years after demand for payment is madeto the maker, but if the instrument states a due date and the maker is notrequired to pay before that date, the six‑year period begins when ademand for payment is in effect and the due date has passed.

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

(g)        Unless governed byother law regarding claims for indemnity or contribution, an action (i) forconversion of an instrument, for money had and received, or like action basedon 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 mustbe commenced within three years after the cause of action accrues.

(h)        A sealed instrumentotherwise subject to this Article is governed by the time limits of G.S. 1‑47(2).(1995, c. 232,s. 1; 2002‑159, s. 7.)