Does the limitation period apply to a demand loan?

The Petitioners’ proceeding was brought out of time even assuming a 10-year limitation period because there were no payments and no acknowledgment of the debt as required by the Act. In fact, the proceeding is by a secured party not in possession of collateral to realize on the collateral and is governed by the 6-year limitation. There is no suggestion that the debt was acknowledged during that limitation period. These circumstances are indistinguishable from those described by Edwards J. in Bilkey v. Paul 2004 BCSC 167. The court there found that where a demand loan was secured by a mortgage the 6-year limitation period commenced to run from the making of the loan and that demand was not necessary. CONCLUSION