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Texas has a weird set up relative to this exact issue. The Texas Business Codes says 6 years. See below:
The Texas Business and Commerce Code § 3.118. STATUTE OF LIMITATIONS. -- (a) Except as provided in Subsection (e) [regarding the obligation of a party to a certificate of deposit], 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.
The Texas Civil Practice Code says four years to perfect a lien. See below:
§§ 16.035(a) and (d) of the Texas Civil Practice and Remedies Code provide for a four year limitation period for the enforcement of a lien securing a debt.
Here is a link to the whole law: http://www.statutes.legis.state.tx.us/Docs/CP/htm/CP.16.htm#16.004
The statute of limitations on debt for residents of the State of Texas is four (4) years. In Texas, this refers to oral agreements, written contracts (car loans, installment loans), promissory notes and open accounts. In Texas, the Statute of Limitations clock starts on the day the last payment on the account was made. This is often referred to as the ‘date of last activity’ or DLA.
The Texas Civil Practice Code is more widely accepted than the business code, and as such, it is my opinion, and the widely held opinion otherwise, that the statute of limitations is four years here and the burden is on the plaintiff to show otherwise.
The time limit for a suit on a note is generally four years in Texas, but it can be extended to six years under certain circumstances when the note in question qualifies as a negotiable instrument.
In determining that the promissory note at issue in the lawsuit was not a negotiable instrument and that a four year statute of limitations applied, the Dallas Court of Appeals noted that a negotiable instrument represents a sum certain in order to provide commercial certainty in the transfer of negotiable instruments and to make negotiable instruments the functional equivalent of money. Because the promissory note at issue in the lawsuit represented a revolving line-of-credit, the borrower could prepay all or any portion of the amount due without incurring any prepayment penalty, the note stated the amount due was $125,000 “or so much as may be outstanding” and the unpaid principal balance may not have been determinable without reference to the creditor-bank’s records, the amount due on the promissory note was not readily determinable. As a result, the promissory note did not contain an unconditional promise to pay a sum certain and was not the functional equivalent of money. Accordingly, the promissory note was non-negotiable and a four year statute of limitations applied.
In order to determine the statute of limitations on a note, the note should be analyzed to determine if it can be classified as a negotiable instrument and if there is any doubt as to its status, any lawsuit to collect on the note should be filed within four years of the date on which a cause of action accrues.
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