GA Code § 11-3-118 (2021)
2021 Georgia Code|Title 11 - Commercial Code|Article 3 - Negotiable Instruments|Part 1 - General Provisions and Definitions|§ 11-3-118. Statute of Limitations

  Except as provided in subsection (e) of this Code section, 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.   Except as provided in subsection (d) or (e) of this Code section, 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.   Except as provided in subsection (d) of this Code section, 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.   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.   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.   An action to enforce the obligation of a party to pay an accepted draft, other than a certified check, must be commenced within (i) 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) six years after the date of the acceptance if the obligation of the acceptor is payable on demand.   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 Code section, must be commenced within three years after the cause of action accrues.   This Code section does not apply to sealed instruments, which are governed by the provisions of Code Section 9-3-23.     (Code 1981, §11-3-118, enacted by Ga. L. 1996, p. 1306, § 3.)   Law reviews.   - For article on the 1963 amendment to the Georgia Uniform Commercial Code, see 14 Mercer L. Rev. 378 (1963). For note, "Negotiable Promissory Notes Containing Time and Demand Provisions: The Need for Consistent Interpretation," see 19 Ga. L. Rev. 717 (1984).   JUDICIAL DECISIONS   Editor's notes.   - In light of the similarity of the provisions, decisions under former Code Section 11-3-122 are included in the annotations for this section.   Retroactive application barred.    - O.C.G.A. § 11-3-118 did not apply retroactively to extend the limitation period in an action on a demand note brought before the current provision went into effect. Johnson v. Hodge, 223 Ga. App. 227, 477 S.E.2d 385 (1996).    Where an action on demand notes was barred under former § 11-3-122(1)(b), O.C.G.A. § 11-3-118 did not apply retroactively to revive the previously time-barred claim. McNeal Constr. Co. v. Wilson, 271 Ga. 540, 522 S.E.2d 222 (1999), reversing McNeal Constr. Co. v. Wilson, 235 Ga. App. 759, 509 S.E.2d 742 (1998).   Direct suit on instrument.    - One may bring action upon debt evidenced by commercial paper by suing directly on instrument which imports its own consideration without setting forth facts creating obligation evidenced by the paper. Minner v. Childs, 116 Ga. App. 272, 157 S.E.2d 50 (1967) (decided under former Code Section11-3-122).   Conversion and negligence action barred.    - Bank account holder's conversion and negligence action against a bank for paying two checks on the holder's account without authorization was barred by the Georgia Uniform Commercial Code's three-year statute of limitations set forth in O.C.G.A. § 11-3-118(g), which applied to negotiable instruments, because the holder did not file a complaint until more than three years after the bank paid the checks at issue. Ogundele v. Wachovia Bank, N.A., F. Supp. 2d (N.D. Ga. Dec. 6, 2004).   Date of commencement of time for bringing actions.    - Six-year period for bringing actions on unsealed demand instrument commences upon date of instrument or, if no date is stated, on date instrument was issued. Woodall v. Hixon, 154 Ga. App. 844, 270 S.E.2d 65, rev'd on other grounds, 246 Ga. 758, 272 S.E.2d 727 (1980) (decided under former Code Section11-3-122).    Cited in Auto-Owners Ins. Co. v. Hale Haven Props., 346 Ga. App. 39, 815 S.E.2d 574 (2018), cert. denied, No. S18C1423, 2019 Ga. LEXIS 75, cert. denied, No. S18C1418, 2019 Ga. LEXIS 88, cert. denied, No. S18C1421, 2019 Ga. LEXIS 92 (Ga. 2019), cert. denied, No. S18C1417, 2019 Ga. LEXIS 93 (Ga. 2019).   RESEARCH REFERENCES   Effect of expiration of former limitation period.   - 11 Am. Jur. 2d, Banks and Financial Institutions, § 927. 11 Am. Jur. 2d, Bills and Notes, § 190. 12 Am. Jur. 2d, Bills and Notes, § 632 et seq. 45 Am. Jur. 2d, Interest and Usury, § 51.   C.J.S.   - 10 C.J.S., Bills and Notes, §§ 86 et seq., 257. 47 C.J.S., Interest and Usury, §§ 42-53.   U.L.A.   - Uniform Commercial Code (U.L.A.) § 3-118.   ALR.    - Who must bear loss of funds from failure of bank, at which bill or note is payable, during delay in presenting it, 2 A.L.R. 1381.    Time at which interest is payable under will or contract providing for payment of interest, 10 A.L.R. 997.    Right of holder to sue bank in respect of deposit made, for payment of existing obligation other than check, 50 A.L.R. 1012.    Time when statute of limitation commences to run in favor of endorser of paper upon which prior endorsement was forged, 117 A.L.R. 1164.    Statute of limitations: action by one secondarily liable on negotiable instrument against others secondarily liable, or against principal, as an action on such instrument, or an action on an implied promise, or a similar action, 143 A.L.R. 1062.   Application of "bad check" statute with respect to postdated checks, 52 A.L.R.3d 464.