Tennessee § 47-3-118 - Statute of limitations.

§ 47-3-118. Statute of limitations.

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 (6) years after the due date or dates stated in the note or, if a due date is accelerated, within six (6) years after the accelerated due date. 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 (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 ten (10) years. 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 (3) years after dishonor of the draft or ten (10) 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 (3) 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 (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 six-year period begins when a demand for payment is in effect and the due date has passed. This subsection (e) is subject to the requirements of § 45-2-710. 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 (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 six (6) 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 chapter and not governed by this section must be commenced within three (3) years after the cause of action accrues. Acts 1995, ch. 397, § 2; 2005, ch. 30, § 2. Amendments. The 2005 amendment added (e)(2). Effective Dates. Acts 2005, ch. 30, § 4. April 11, 2005. Textbooks. Tennessee Jurisprudence, 6 Tenn. Juris., Commercial Law, § 55. Law Reviews. Civil Procedure — Pero's Steak & Spaghetti House v. Lee: Tennessee Declines to Extend the Discovery Rule to Claims of Converted Negotiable Instruments, 34 U. Mem. L. Rev. 475 (2004). Paine on Procedure: The Statute of Limitations for Conversion of Personal Property (Donald F. Paine), 45 Tenn. B.J. 29 (2009). Recent Development, Implied Covenants of Good Faith and Fair Dealing: Loose Cannons of Liability for Financial Institutions, 40 Vand. L. Rev. 1197 (1987). Securities — Reves v. Ernst & Young: The Status of Notes Under the Securities Acts: An Analysis of the Family Resemblance Test, 21 Mem. St. U.L. Rev. 387 (1991). Written Agreements in the Lender-Borrower Context: The Illusion of Certainty, 42 Vand. L. Rev. 917 (1989).