[WSBARP] Statute of Limitations on a Note and DOT

[Robert Ordal]

Eric

Doesn't the DT have the common clauses for future advances and other indebtedness?

Bob

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Eric Nelsen
Sent: Thursday, November 03, 2016 12:36 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Statute of Limitations on a Note and DOT

Re-posting this, since 4:30 PM was a lousy time to send it around the first time. Any opinions or thoughts much appreciated--

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1417 31st Ave South
Seattle WA  98144-3909
phone 206-625-0092
fax 206-625-9040

Please Note that We Have Moved. We have moved our Seattle office to Mount Baker Ridge (a small commercial community just above the I-90 tunnel). Our new address is 1417 31st Avenue South, Seattle WA 98144. All other contact information remains the same.

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Eric Nelsen
Sent: Wednesday, November 02, 2016 4:18 PM
To: WSBA Real Property listserve (wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>)
Subject: [WSBARP] Statute of Limitations on a Note and DOT

I love pro se legal documents. Here's a fancy one, law school exam, multiple-choice:

FACTS:

Promissory Note signed for a loan of $10,000, dated July 1, 2006, no installments, no due date, 16.5% interest "starting August 1, 2007 to February 1, 2008", no mention of security. Straight demand note--just a promise to repay. 6-year statute of limitations, BUT:

Lender gives an additional $5,000 on November 1, 2010, no Note signed, but has Borrower sign a Deed of Trust saying:
"This Deed of Trust is for the purpose of securing performance of each agreement of Grantor contained in this Deed of Trust, and payment of the sum of $17,500 in accordance with the terms of a promissory note of even date herewith."
AND
"The entire balance of the promissory note secured by this Deed of Trust shall be due and payable in full on November 10, 2012."

These are commercial/business loans, not personal/consumer loans.

Lender asserts that the inflated total of $17,500, as opposed to the principal total of $15,000, is to "add agreed interest." But Borrower is dead, so dead man's statute applies and all this must be interpreted by the written documentation--Lender can't testify as to "adding agreed interest."

What is the statute of limitations as to the $10,000 Note?
(A) July 1, 2012, because execution of the Deed of Trust mentioning $15,000 does not reaffirm that debt because it is not a Note of "even date"?
(B) November 1, 2016, because the Deed of Trust did reaffirm the Note, and the discrepancies in "even date" and in interest do not affect parties' intent?
(C) November 10, 2018, because the due on sale clause is incorporated into the Note?

What is the statute of limitations as to the $5,000 loaned without any Note?
(A) November 1, 2013, because it is an oral promise to repay?
(B) November 1, 2016, because the Deed of Trust is sufficient writing to bring this loan under the written contract statute of limitations?
(C) November 10, 2018, because the due on sale clause relates to this loan, even though it claims to be for $17,500 rather than $5,000?

Anyone have some thoughts? Input and off-the-cuff opinions all appreciated.

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1417 31st Ave South
Seattle WA  98144-3909
phone 206-625-0092
fax 206-625-9040

Please Note that We Have Moved. We have moved our Seattle office to Mount Baker Ridge (a small commercial community just above the I-90 tunnel). Our new address is 1417 31st Avenue South, Seattle WA 98144. All other contact information remains the same.

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