554.3118 Accrual of cause of action.
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/ia/chapter-554-uniform-commercial-code/554-3118A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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.
94 Acts, ch 1167, §27, 121, 122