CERTIFICATION OF ENROLLMENT

                        SENATE BILL 5165

                        54th Legislature

                      1995 Regular Session

Passed by the Senate March 7, 1995   YEAS 49   NAYS 0 President of the Senate Passed by the House April 6, 1995   YEAS 95   NAYS 0

CERTIFICATE I, Marty Brown, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SENATE BILL 5165 as passed by the Senate and the House of Representatives on the dates hereon set forth.

Speaker of the       House of Representatives

Secretary

Approved Place Style On Codes above, and Style Off Codes below.

FILED

Governor of the State of Washington

Secretary of State                   State of Washington

          _______________________________________________

                         SENATE BILL 5165

          _______________________________________________

             Passed Legislature - 1995 Regular Session

State of Washington      54th Legislature     1995 Regular Session

By Senator Smith

Read first time 01/13/95.  Referred to Committee on Financial Institutions & Housing.

Revising the statute of limitations for negotiable instruments.

    AN ACT Relating to the statute of limitations for negotiable instruments; and amending RCW 62A.3‑118.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 62A.3‑118 and 1993 c 229 s 20 are each amended to read as follows:

    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 ten 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)) six years after dishonor of the draft or ten 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 (i) 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 (ii) 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, 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 section must be commenced within three years after the cause of action accrues.

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