Updates and background for this project (Digest)
Recommendation 1
The Limitation Act 1969 (NSW) should be amended to provide that the limitation period for a loan payable on demand should run from the date on which demand is first made for repayment. This provision should not affect the accrual of the cause of action.
Recommendation 2
The limitation period for loans payable on demand should be three years after the demand has been made.
Recommendation 3
The ultimate bar for loans payable on demand should apply 30 years from the date the loan was made.
Recommendation 4
A demand for repayment of a loan payable on demand need not be in writing before the limitation period can begin to run.
Recommendation 5
“Demand” should be defined to mean an unconditional demand for immediate payment, including a demand that allows the borrower a reasonable time to arrange payment.
Recommendation 6
A demand for part only of the loan should not have the effect of barring future demands in respect of the balance of the loan.
Recommendation 7
For the purposes of determining whether or not the loan is payable on demand, the terms of a collateral obligation to pay the amount of the debt or any part of it should be read into the terms of the loan agreement itself and, to the extent of any inconsistency between the terms, prevail over them.
