Wednesday, 15 October 2014

What is the time requirement before a bank loan can be discharged in California under UCC requirements?

Question

What is the time requirement before a bank loan can be discharged in California under UCC requirements?



Answer

The UCC has no provisions for discharge of a bank loan that I know of. Debts are only discharged in Bankruptcy Court. Like any other contract, breaches of bank loan agreements, including failure to pay when due, are subject to a four-year statute of limitations, but that is not a UCC provision and it does not discharge the debt, it merely makes it unenforceable in a court proceeding.



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