III. Commercial Law

• Library: Guide to Arkansas Statutes of Limitations (2017 Ed.)

III. COMMERCIAL LAW

A. BANK DEPOSITS AND COLLECTIONS.

1. In general. Any action to enforce an obligation, duty, or right arising under Article Four of the Uniform Commercial Code as adopted in Arkansas must be brought within three (3) years after the cause of action accrues. A.C.A. § 4-4-111.

2. Warranties.

a. Presentment warranties. Unless notice of a claim for a breach of a presentment warranty is given to the warrantor within thirty (30) days after the claimant has reason to know of the breach and the identity of the warrantor, the warrantor is discharged from liability to the extent of any loss caused by the delay in giving notice of the claim. A.C.A. § 4-4-208(e).

b. Transfer warranties. Unless notice of a claim for a breach of a transfer warranty is given to the warrantor within thirty (30) days after the claimant has reason to know of the breach and the identity of the warrantor, the warrantor is discharged from liability to the extent of any loss caused by the delay in giving notice of the claim. A.C.A. § 4-4-207(d).

B. COMMERCIAL PAPER.

1. Liability on instrument.

a. Accepted draft. An action brought in order to enforce the obligation of a party to pay an accepted draft, other than a certified check, must be brought (a) within five (5) 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 (b) within six (6) years after the date of the acceptance if the obligation of the acceptor is payable on demand. A.C.A. § 4-3-118(f).

b. Certificate of deposit. A party wishing to bring an action to enforce the obligation of a party to a certificate of deposit to pay the instrument must commence the action within five (5) 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 to accrue when a demand for payment is in effect and the due date has passed. A.C.A. § 4-3-118(e).

c. Certified check, teller’s check, and traveler’s check. A party wishing to bring 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 bring the action within three (3) years after demand for payment is made to the acceptor or issuer, as the case may be. A.C.A. § 4-3-118(d).

d. Conversion, breach of warranty, and enforcement of duty. Unless governed by other law regarding

...