554.3118  Accrual of cause of action.

1.  A cause of action against a maker or an acceptor accrues

a.  in the case of a time instrument on the day after maturity;

b.  in the case of a demand instrument upon its date or, if no date is stated, on the date of issue.

2.  A cause of action against the obligor of a demand or time certificate of deposit accrues upon demand, but demand on a time certificate may not be made until on or after the date of maturity.

3.  A cause of action against a drawer of a draft or an endorser of any instrument accrues upon demand following dishonor of the instrument. Notice of dishonor is a demand.

4.  Unless an instrument provides otherwise, interest runs at the rate provided by law for a judgment

a.  in the case of a maker, acceptor or other primary obligor of a demand instrument, from the date of demand;

b.  in all other cases from the date of accrual of the cause of action.

Section History: Recent form

  94 Acts, ch 1167, §27, 121, 122

Footnotes

  Effective July 1, 1995; 94 Acts, ch 1167, §122; former section repealed effective July 1, 1995; 94 Acts, ch 1167, §121, 122; for law prior to July 1, 1995, see Code 1993; see also §554.3103, 554.3104, 554.3112, 554.3114, and 554.3116


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