Commercial Code / Negotiable Instruments

Passed

P HB193

Negotiable instruments; enforcement and satisfaction. Establishes the date from which the six-year limitations period on actions to enforce a right under a deposit account or a certificate of deposit starts to toll. The measure will become effective on January 1, 2007, and will be effective retroactively. However, a person with a cause of action that accrued after January 1, 1997, shall have until January 1, 2013, or until the end of the six-year period specified in the measure, whichever is longer, to bring an action to enforce the bank's obligations. The measure also provides that a person does not act in good faith when tendering a check in full satisfaction of an obligation under a loan if the check is for less than the full amount due and the check is tendered to a person without knowledge of a dispute concerning the loan.
Patron - Kilgore

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