Lawyers often encounter the following situation: when sorting out the estate of a deceased relative, a family member discovers old loan records — such as IOUs or bank transfer slips. For example, one person found that their late father had lent money to a friend twenty years ago, with clear transfer records in an old bankbook. At first glance, it seems that since the debt was never repaid, the heirs could inherit the creditor's right and demand repayment from the borrower. However, the situation is rarely that simple — one must consider whether the creditor's right to demand repayment has already expired due to the statute of limitations.

Many people intuitively think that if no repayment date was set, the lender can demand repayment at any time. But the law is not so straightforward — under the Civil Code, a claim is subject to a statute of limitations, even when no repayment date is agreed upon. It is therefore crucial to understand when the limitation period begins and when it expires.

The Concept of Claims and the Statute of Limitations under the Civil Code

In civil legal relationships, the right to demand that another person pay money or perform a specific act must be based on a contract or a legal provision — this is called a claim (請求權). Under Taiwan's Civil Code, claims are subject to a statute of limitations. Unless otherwise provided by law, the general limitation period is 15 years（Civil Code Article 125）。

The statute of limitations serves two key purposes:

1. Preventing Rights Holders from Neglecting Their Rights – the law does not protect those who fail to exercise their rights for an extended period.

2. Maintaining Stability in Transactions and Society – without limitation periods, legal relationships could remain unsettled indefinitely, undermining social and economic order.

The limitation period starts when the claim becomes exercisable — that is, when the creditor has the right to demand performance. For example, if a loan agreement specifies a repayment date, the limitation period begins the day after that date.

When Does the Limitation Period Start for Loans Without a Repayment Date?

In cases of loans without an agreed repayment date, there has been some disagreement in court interpretations regarding when the limitation period starts to run:

1. Supreme Court Civil Division Conference Resolution No. 7 of 2010 (99th Year)
   Based on Civil Code Article 478 (second part), which states:
   “If no time for return has been fixed, the borrower may return the loan at any time, and the lender may set a reasonable period of not less than one month and demand repayment.”
   Therefore, the limitation period starts only after the one-month period expires following the creditor's demand for repayment.

2. Supreme Court Precedent 28-Year Yushang-Zi No. 1760 (1939)
   Referring to Civil Code Article 315, which provides:
   “Unless otherwise provided by law, by contract, or determined by the nature of the obligation, the creditor may demand performance at any time, and the debtor may perform at any time.”
   According to this view, for loans without a specified repayment date, the creditor can demand repayment immediately — thus, the limitation period begins the moment the loan is made.

Practical Implications of the Above Interpretations

1. Can the Heirs Demand Repayment?

Returning to the example at the beginning: after the original creditor (the father) passes away, the heirs may inherit his right to collect the debt. However, they must first consider whether the debt has already become time-barred.
Depending on which legal interpretation the court applies — the 2010 Civil Division Conference resolution or the 1939 Supreme Court precedent — the result could be very different. Under one interpretation, the limitation starts after a demand is made; under the other, it starts from the date of the loan itself.

2. The Importance of Legal Assistance

This issue shows how complex the statute of limitations can be in the context of loans without a fixed term. Many people underestimate the technical nature of limitation periods and their interaction with claims.
In practice, consulting a lawyer is essential to avoid procedural errors or the debtor successfully asserting a time-bar defense, which could cause the creditor (or heirs) to lose their right to recover the debt altogether.

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