When does the limitation period start on a demand promissory note in Alberta?

When the borrower defaults after you demand payment. You then have 2 years, and no more than 10 years after the claim arose.

Can I sue on a promissory note in the Alberta Court of Justice?

Yes, for up to 100,000 dollars, not counting interest payable under the note.

Alberta Promissory Note Rules: Interest and Time to Sue

Alberta promissory note requirements

Your Alberta promissory note has 8 rules to meet. ReportDraft puts every one on your checklist and checks your draft before you sign.

2 years to sue, 10 years at most
Court of Justice civil claims up to 100,000 dollars
A demand loan counted from the default after demand (s. 3 (3) (c))

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In Alberta a promissory note follows the federal rules on this page, and Alberta's Limitations Act decides how long you have to collect: 2 years from discovery, never more than 10 years. For a demand note, the claim arises only on default after a demand. Here is each provincial rule with its source.

Last reviewed November 3, 2026 against the official sources listed below.

Payment	Date	Amount	Interest	Principal	Balance
1	December 1, 2026	$1,010.02	$15.00	$995.02	$2,004.98
2	January 1, 2027	$1,010.02	$10.02	$1,000.00	$1,004.98
3	February 1, 2027	$1,010.00	$5.02	$1,004.98	$0.00
Totals		$3,030.04	$30.04	$3,000.00

Payment

Date

Amount

Interest

Principal

Balance

December 1, 2026

$1,010.02

$15.00

$995.02

$2,004.98

January 1, 2027

$1,010.02

$10.02

$1,000.00

$1,004.98

February 1, 2027

$1,010.00

$5.02

$1,004.98

$0.00

Totals

$3,030.04

$30.04

$3,000.00

What	Result	Rule
Yearly rate stated on the note	6% a year (effective 6.17% with monthly compounding): a rate stated only by the month or week would be capped at 5% a year	Interest Act s. 4
Criminal interest rate	Under the limit of 35% a year (6.17%), counting all fees and charges as interest	Criminal Code s. 347
Last day to sue if the final payment is missed	February 2, 2029 (2 years from the day after the final payment on February 1, 2027); each earlier missed payment runs from its own date	Limitations Act s. 3 (1) (a)
A part payment or a signed written acknowledgement	Under the Limitations Act, starts the period again from that day if made before it runs out	Limitations Act s. 8, 9 (1)
Where to file for this amount	Alberta Court of Justice (civil claims): claims up to $100,000, not counting interest and costs	Court of Justice Act s. 9.6 (1); Alta. Reg. 176/2018 s. 2

What

Result

Rule

Yearly rate stated on the note

6% a year (effective 6.17% with monthly compounding): a rate stated only by the month or week would be capped at 5% a year

Interest Act s. 4

Criminal interest rate

Under the limit of 35% a year (6.17%), counting all fees and charges as interest

Criminal Code s. 347

Last day to sue if the final payment is missed

February 2, 2029 (2 years from the day after the final payment on February 1, 2027); each earlier missed payment runs from its own date

Limitations Act s. 3 (1) (a)

A part payment or a signed written acknowledgement

Under the Limitations Act, starts the period again from that day if made before it runs out

Limitations Act s. 8, 9 (1)

Where to file for this amount

Alberta Court of Justice (civil claims): claims up to $100,000, not counting interest and costs

Court of Justice Act s. 9.6 (1); Alta. Reg. 176/2018 s. 2

What Alberta requires

A claimant who does not seek a remedial order within 2 years after first knowing, or when they ought to have known, of the injury, that the defendant caused it and that it warrants a proceeding loses the claim once the defendant pleads the ActLimitations Act, s. 3 (1) (a)
The Alberta Court of Justice hears civil claims for debt or damages of up to 100,000 dollars, not counting interest payable under an Act or by agreementCourt of Justice Act, s. 9.6 (1) (a) · Court of Justice Civil Procedure Regulation, s. 2
A claim based on a demand obligation arises when a default in performance occurs after a demand for performance is madeLimitations Act, s. 3 (3) (c)
Whatever the discovery date, the claim is lost 10 years after it aroseLimitations Act, s. 3 (1) (b)
For a claim to recover an accrued liquidated sum, such as a debt or interest, an acknowledgement or a part payment made before the limitation period expires starts the period again; an acknowledgement is an admission that the sum is due and unpaid and must be in writing and signed by the person liableLimitations Act, s. 8 (1) to (3) and 9 (1)
A court awards interest on a money judgment from the date the cause of action arose to the date of judgment, but not where there is an agreement between the parties about interestJudgment Interest Act, s. 2 (1), (2) (h)

Demand notes and instalment notes

On a demand note the claim arises when the borrower defaults after a demand. On an instalment note each missed payment can be claimed for 2 years. Either way, 10 years after the claim arose is the end.

Payments and acknowledgements

A payment on the note, or a signed written admission that the balance is due and unpaid, starts the period again, and one on interest counts for the principal too.

Court

The Alberta Court of Justice hears claims up to 100,000 dollars, not counting interest owed under the note.

Common mistakes

Assuming a 15-year outer limit: Alberta's is 10.
Taking a verbal admission of the balance instead of a signed one.
Stating only a monthly rate.

Sources

Limitations Act, s. 3 (1) (a), checked November 3, 2026
Court of Justice Act, s. 9.6 (1) (a), checked November 3, 2026
Court of Justice Civil Procedure Regulation, s. 2, checked November 3, 2026
Limitations Act, s. 3 (3) (c), checked November 3, 2026
Limitations Act, s. 3 (1) (b), checked November 3, 2026
Limitations Act, s. 8 (1) to (3) and 9 (1), checked November 3, 2026
Judgment Interest Act, s. 2 (1), (2) (h), checked November 3, 2026

Last reviewed November 3, 2026. Next review due February 3, 2027. This page explains published rules to help you write your report. It is not legal advice; the official text linked above governs.