While Commercial Code 3118(a) provides for a 6 year statute of limitations which can apply to a promissory note (9-109(a)(3). The key is this ONLY applies to a negotiable instrument (Comm. Code §3102) So, you have to make sure your promissory note falls under the Commercial Code. Most real estate promissory notes do NOT qualify as negotiable instruments. Here are some factors to consider : Continue Reading Does a 6 year statute of limitations apply to a promissory note secured by real property?
Lender counsel (e.g. debt collectors) often argue a guarantor debtor has no defense as they waived all defenses. That is not true. See California Bank and Trust v. Thomas Del Ponti (2014) 232 Cal.App. 4th 162. The court held Civil Code §2856 ONLY waives those defenses specified so defenses such as unclean hands or equitable defenses remain valid. The point is a lender cannot take advantage of its own wrong.