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“'''[[Simple contract]]'''” is one that is not a “[[specialty]]” — a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt, | “'''[[Simple contract]]'''” is one that is not a “[[specialty]]” — a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt, such as a [[deed]] — and [[Limitation Act]] also puts it in contrast to: | ||
*'''[[Insurance contract]]s''': payment claims under [[insurance contract]]s — perhaps not “simple” because of the duty of [[utmost good faith]] implied in them — who knows? | *'''[[Insurance contract]]s''': payment claims under [[insurance contract]]s — perhaps not “simple” because of the duty of [[utmost good faith]] implied in them — who knows? | ||
*'''[[Contract of loan]]s''': any “[[contract of loan]]” which: | *'''[[Contract of loan]]s''': any “[[contract of loan]]” which: | ||
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We quote that last bit in full because, for a short piece of text, it 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 for yourself — 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> | We quote that last bit in full because, for a short piece of text, it 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 for yourself — 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> | ||
===The {{repackprov|covenant to pay}}=== | |||
Hence why the {{repackprov|covenant to pay}} in the terms of a secured note issue is also repeated in the [[security trust deed]] — it converts itself from a [[simple contract]] to a [[specialty]]. This is a bity of a cheeky run-around, in our view, but still. | |||