§ 25-2A-506. Statute of limitations.

§25‑2A‑506.  Statute of limitations.

(1)        An action fordefault under a lease contract, including breach of warranty or indemnity, mustbe commenced within four years after the cause of action accrued.  By theoriginal lease contract the parties may reduce the period of limitation to notless than one year.

(2)        A cause of actionfor default accrues when the act or omission on which the default or breach ofwarranty is based is or should have been discovered by the aggrieved party, orwhen the default occurs, whichever is later.  A cause of action for indemnityaccrues when the act or omission on which the claim for indemnity is based isor should have been discovered by the indemnified party, whichever is later.

(3)        If an actioncommenced within the time limited by subsection (1) of this section is soterminated as to leave available a remedy by another action for the samedefault or breach of warranty or indemnity, the other action may be commencedafter the expiration of the time limited and within six months after thetermination of the first action unless the termination resulted from voluntarydiscontinuance or from dismissal for failure or neglect to prosecute.

(4)        This section doesnot alter the law on tolling of the statute of limitations nor does it apply tocauses of action that have accrued before this Article becomes effective. (1993,c. 463, s. 1.)