UNIFORM COMMERCIAL CODE
Act 174 of 1962
440.3118 Action to enforce obligation; commencement; time period; other actions.
Sec. 3118.
(1) Except as provided in subsection (5), an action to enforce the obligation of a party to pay a note payable at a definite time must be commenced within 6 years after the due date or dates stated in the note or, if a due date is accelerated, within 6 years after the accelerated due date.
(2) Except as provided in subsection (4) or (5), 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 6 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 10 years.
(3) Except as provided in subsection (4), an action to enforce the obligation of a party to an unaccepted draft to pay the draft must be commenced within 3 years after dishonor of the draft or 10 years after the date of the draft, whichever period expires first.
(4) 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 3 years after demand for payment is made to the acceptor or issuer.
(5) An action to enforce the obligation of a party to a certificate of deposit to pay the instrument must be commenced within 6 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 6-year period begins when a demand for payment is in effect and the due date has passed.
(6) An action to enforce the obligation of a party to pay an accepted draft, other than a certified check, must be commenced (i) within 6 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 6 years after the date of the acceptance if the obligation of the acceptor is payable on demand.
(7) 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 3 years after the cause of action accrues.
History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
Notes of Decisions
Cadlerock Jt. Venture Lp v. Atina Buterakous (Mich. Ct. App. 2023).
· cites it 10× “The trial court held that plaintiff’s claim was barred by the statute of limitations, explaining in relevant part: In Michigan, the general statute of limitations on an obligation to pay a loan on a note is 6 years after the due dates pursuant to MCL 440.3118(1 ). If the lender…”
Wilmington Sav. Fund Soc'y Fsb v. Alex Schmidt (Mich. Ct. App. 2021).
· cites it 9× “The trial court, however, held that the applicable limitations period was set forth in MCL 440.3118, which provides limitations on actions to enforce obligations to pay a note.”
in Re Marion Van Slooten Trust (Mich. Ct. App. 2019).
· cites it 4× “116(C)(7) and (10) in both cases, arguing that plaintiffs’ claims were time-barred by the six-year statute of limitations in MCL 440.3118(1). Brenner maintained that full payment by JDB on the promissory notes was due in March 2010, that JDB failed to make full payment, and that…”
Dolores R Yanover Revocable Trust v. Betty Sue Hancock (Mich. Ct. App. 2022).
“First, the statute of limitations for actions on a promissory note is MCL 440.3118, which states: (1) Except as provided in subsection (5), an action to enforce the obligation of a party to pay a note payable at a definite time must be commenced within 6 years after the due date…”
Stand. Fed. Sav. & Loan Ass'n v. Citizens Ins. Co. of Am., 297 N.W.2d 656 (Mich. Ct. App. 1980).
· cites it 2× “In view of the policy of the UCC "to encourage the free circulation of negotiable paper”, Official Comment 1 to MCL 440.3118; MSA 19.3118, we feel this strict construction is still disfavored.”
Newman v. Mfrs. Nat'l Bank, 152 N.W.2d 564 (Mich. Ct. App. 1967).
“” Also, PA 1962, No 174, § 3118 (CL 1948, § 440.3118 [Stat Ann 1964 Rev § 19.3118]) provides in part as follows: “The following rules apply to every instrument :***- “(b) Handwritten terms control typewritten and printed terms, and typewritten control printed.”
— Mich. Comp. Laws § 440.3118(1) — 3 cases
Wilmington Sav. Fund Soc'y Fsb v. Alex Schmidt (Mich. Ct. App. 2021).
“The trial court, however, held that the applicable limitations period was set forth in MCL 440.3118, which provides limitations on actions to enforce obligations to pay a note.”
in Re Marion Van Slooten Trust (Mich. Ct. App. 2019).
“116(C)(7) and (10) in both cases, arguing that plaintiffs’ claims were time-barred by the six-year statute of limitations in MCL 440.3118(1). Brenner maintained that full payment by JDB on the promissory notes was due in March 2010, that JDB failed to make full payment, and that…”
Cadlerock Jt. Venture Lp v. Atina Buterakous (Mich. Ct. App. 2023).
“The trial court held that plaintiff’s claim was barred by the statute of limitations, explaining in relevant part: In Michigan, the general statute of limitations on an obligation to pay a loan on a note is 6 years after the due dates pursuant to MCL 440.3118(1 ). If the lender…”
— Mich. Comp. Laws § 440.3118(2) — 2 cases
Wilmington Sav. Fund Soc'y Fsb v. Alex Schmidt (Mich. Ct. App. 2021).
“The trial court, however, held that the applicable limitations period was set forth in MCL 440.3118, which provides limitations on actions to enforce obligations to pay a note.”
Cadlerock Jt. Venture Lp v. Atina Buterakous (Mich. Ct. App. 2023).
“The trial court held that plaintiff’s claim was barred by the statute of limitations, explaining in relevant part: In Michigan, the general statute of limitations on an obligation to pay a loan on a note is 6 years after the due dates pursuant to MCL 440.3118(1 ). If the lender…”
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