In South Carolina, old debts do not age gracefully. At some point, the law steps in and says enough. That is especially true with promissory notes that never specify when they must be repaid.
What Counts as a Demand Note in South Carolina
South Carolina’s Commercial Code defines a negotiable instrument as an unconditional written promise to pay a fixed sum of money, payable either on demand or at a definite time. S.C. Code Ann. § 36-3-104.
A note is “payable on demand” if it either states it expressly or fails to state a time for repayment. S.C. Code Ann. § 36-3-108. Once a note qualifies as a demand note, it falls squarely under Article 3 of South Carolina’s Commercial Code, along with its statute of limitations.
The Two Clocks That Govern Demand Notes
South Carolina sets out the limitations period for negotiable instruments in S.C. Code Ann. § 36-3-118. For demand notes, the statute creates two alternative timelines.
First, if the holder actually makes a demand for payment, the holder has six years from that demand to file suit.
Second, and more important in many cases, if no demand is ever made, the statute imposes an automatic cutoff. An action to enforce the note is barred if neither principal nor interest has been paid for a continuous period of ten years.
This is not discretionary. The official comment to the statute confirms the point plainly. If no demand is made and no payments occur for ten years, the claim is over.
Why Statutes of Limitation Exist
The United States Supreme Court captured the rationale perfectly. Statutes of limitation are not about technicalities or clever defenses. They exist out of necessity and convenience. They protect courts and litigants from stale claims, faded memories, missing witnesses, and lost evidence.
That concern is magnified when the parties themselves are no longer alive.
When years pass without demand, payment, or action, the law presumes the claim has gone dormant for good reason. At some point, finality matters more than revival.
The Takeaway
Demand notes are simple instruments, but they come with unforgiving deadlines. If a note has no due date and no payments are made, the ten year clock starts ticking immediately. When that clock runs out, the claim is not weak. It is extinguished.
In South Carolina, timing is not a footnote. It is the case.
