70A-2a-506 - Statute of limitations.
70A-2a-506. Statute of limitations.
(1) An action for default under a lease contract, including breach of warranty orindemnity, must be commenced within four years after the cause of action accrued. By theoriginal lease contract, the parties may reduce the period of limitation to not less than one year.
(2) A cause of action for default accrues when the act or omission on which the default orbreach of warranty is based is or should have been discovered by the aggrieved party, or when thedefault occurs, whichever is later. A cause for action of indemnity accrues:
(a) in the case of an indemnity against liability, when the act or omission on which theclaim for indemnity is based is or should have been discovered by the indemnified party,whichever is later; or
(b) in the case of an indemnity against loss or damage, when the person indemnifiedmakes payment thereof.
(3) If an action commenced within the time limited by Subsection (1) is so terminated asto leave available a remedy by another action for the same default or breach of warranty orindemnity, the other action may be commenced after the expiration of the time limit and withinsix months after the termination of the first action unless the termination resulted from voluntarydiscontinuance or from dismissal for failure or neglect to prosecute.
(4) This section does not alter the law on tolling of the statute of limitations nor does itapply to causes of action that have accrued before July 1, 1990.
Amended by Chapter 13, 1998 General Session