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:''except where in connection with taking the loan the debtor enters into any [[collateral]] obligation to pay the amount of the debt or any part of it (as, for example, by delivering a [[promissory note]] as [[security]] for the [[debt]]) on terms which would exclude the application of this section to the [[contract of loan]] if they applied directly to repayment of the [[debt]].
:''except where in connection with taking the loan the debtor enters into any [[collateral]] obligation to pay the amount of the debt or any part of it (as, for example, by delivering a [[promissory note]] as [[security]] for the [[debt]]) on terms which would exclude the application of this section to the [[contract of loan]] if they applied directly to repayment of the [[debt]].


Now for a short piece of text this is bloody hard to decipher. There are no explanatory notes to the Limitation Act 1980 — in the good old days, you were just meant to figure it out — but for help we do have that Law Commission bunker buster which says “section 6 does not apply where the debtor enters into a collateral obligation to pay the amount of the debt or any part of it on a fixed or determinable date or conditional on a demand for repayment (or other condition).” So if the promissory note itself is a demand loan, but it is pledged as collateral for another debt which isn’t, then it counts as having a payment date. That's the best I can do.
Now for a short piece of text this is bloody hard to decipher. There are no explanatory notes to the Limitation Act 1980 — in the good old days, you were just meant to figure it out — but for help we do have that Law Commission bunker buster which says “section 6 does not apply where the debtor enters into a collateral obligation to pay the amount of the debt or any part of it on a fixed or determinable date or conditional on a demand for repayment (or other condition).” So if the promissory note itself is a demand loan, but it is pledged as collateral for another debt which isn’t, then it counts as having a payment date. That's the best I can do. <br>
 
“[[Contract of loan]]”? I think we can safely assume this applies to any [[Money|monetary]] transaction having that effect regardless of form, the handing over of money instantly creating a liability as it does — so including [[Deposit|deposits]], [[debt securities]] and so on. But what of the [[loan]] of ''property'', the transfer of which doesn’t confer [[Title transfer|title]]? If I lend you my car and forget to ask you for it back, does it become yours after six years? No, because you never own it in the first place. But my ability to sue you for rental income on it might.
 
And what about things that we call loans, but which economically don’t resemble loans? [[Stock loan]]s for example? here title ''is'' automatically transferred, and there is no obligation to return, absent a demand. It could seem odd if these would suddenly by extinguished if undemanded after six years. On the other hand, liabilities may arise under a [[stock loan]] contract — to [[Manufactured payments in respect of Loaned Securities - GMSLA Provision|manufacture a dividend]] for example — which ''are'' payable on a fixed or determinable date.<ref>Namely, the day they are paid by the underlying issuer — see Section {{gmslaprov|6.2}}.</ref> are these not time barred either, simply because the stock loan repayment itself is time barred?
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