Template:S6 Limitation Act 1980 nutshell

6 Special time limits for demand loans

(1) The limitation period for simple contracts as set out in Section 5 will not apply to “demand loans”. Instead, the cause of action on a demand loan will accrue, and the limitation period will begin to run as if it were a simple contract, from the date on which a creditor first demands repayment in writing.

(2) A “demand loan” is a loan with no defined repayment date and that is repayable on demand, except where the borrower entered into a collateral obligation to repay it (e.g., by delivering a promissory note as security) on terms that, if they applied directly to the loan would mean it was not a demand loan).