2023 Texas Statutes › Business and Commerce Code › Title 1 - Uniform Commercial Code › Chapter 3 - Negotiable Instruments › Subchapter A. General Provisions and Definitions › Section 3.118. Statute of Limitations

Sec. 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 10 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 10 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)  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:
(1)  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
(2)  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, the following actions must be commenced within three years after the cause of action accrues:
(1)  an action for conversion of an instrument, an action for money had and received, or like action based on conversion;
(2)  an action for breach of warranty;  or
(3)  an action to enforce an obligation, duty, or right arising under this chapter and not governed by this section.
(h)  This section does not apply to an action involving a real property lien covered by Section 16.035 or 16.036, Civil Practice and Remedies Code.
(i)  A right of action of a public institution of higher education or the Texas Higher Education Coordinating Board is not barred by this section.
Amended by Acts 1995, 74th Leg., ch. 921, Sec. 1, eff. Jan. 1, 1996;  Acts 1997, 75th Leg., ch. 219, Sec. 4, eff. May 23, 1997;  Acts 2001, 77th Leg., ch. 279, Sec. 1, eff. May 22, 2001.