§ 5. Promissory notes and loans of money become time-barred after 10 years

§ 5 is one of the most important rules for loans and larger monetary claims (pengekrav). It says that some claims last longer than ordinary claims. The general rule in § 2 is 3 years. But if the claim is based on a promissory note, registration in a central securities depository or a loan of money, the period is usually 10 years.

A promissory note is a document in which someone acknowledges in writing that they owe money. It can be a formal promissory note from a bank. It can also be a private document between two people, if it is actually intended as a promissory note. The point is that the claim is clearly documented. The debtor (skyldner) has signed to confirm that the debt exists.

A loan of money is simpler. It means that someone has borrowed money. Kari lends NOK 50,000 to Ola. Ola is to pay it back. That is a loan of money. Under § 5, such claims become time-barred after 10 years, but interest is excepted. Interest usually follows shorter rules.

This is important because many people think private loans always become time-barred after 3 years. That is not necessarily true. If it actually is a loan of money, § 5 says that the claim for the loan amount itself becomes time-barred after 10 years. But you still need to know when the period starts. To find out, you must read § 5 together with § 3. The period usually starts when the lender can first demand repayment.

The first paragraph also mentions claims registered in a central securities depository. This is mostly relevant in more formal financial arrangements. For ordinary private individuals, it is mainly promissory notes and loans of money that matter.

There are also important exceptions in the first paragraph. Subsequently accrued interest, company dividends and subsequently accrued periodic payments as mentioned in § 6 do not necessarily follow the 10-year period. This means that a main claim may have a 10-year period, while interest and ongoing payments may become time-barred earlier or under their own rules.

The second paragraph says that loans of money become time-barred after 10 years, but not interest. It also says that the 10-year period does not apply to loans given by the seller, or by someone by agreement with the seller, to finance a credit purchase. A credit purchase means you buy something now and pay later. In that case the law will not automatically give the long 10-year period just because the payment is called a loan.

Do private loans become time-barred after 3 or 10 years?

Private loans of money become time-barred after 10 years as a starting point. That is the practical main rule in § 5 second paragraph. If you lend money to a friend, a family member or a cohabiting partner, the claim for the loan amount itself can therefore last longer than an ordinary invoice (faktura).

But this does not mean you can relax completely. You still need to keep track of the dates. If you agreed that the loan was to be repaid on 1 June 2026, the 10-year period can normally be counted from that date. If you did not agree on a repayment date, the question can become more complicated. It may then be that the lender could demand payment immediately, or upon demand. This must be assessed in each specific case.

You should also distinguish between the principal (hovedstol) and interest. The principal means the loan amount itself. If you lend out NOK 100,000, NOK 100,000 is the principal. Interest is payment for having borrowed the money. § 5 gives 10 years for the loan of money, but says expressly that interest is excepted. Interest claims can therefore become time-barred earlier.

For private loans, it is wise to write the agreement clearly. Write the amount. Write the date. Write when the loan is to be repaid. Write whether interest is to be paid. Write what happens if the loan is not paid. Both should sign. Use BankID signing if you can.

It is also wise to get written acknowledgements (erkjennelse) along the way. If the debtor writes "I confirm that I still owe you NOK 80,000", this can interrupt limitation under § 14. A new period then runs under § 20. Vague messages are weaker. "I'll look into it" is not as safe as a clear acknowledgement of the amount.

What is the difference between a promissory note and an ordinary loan?

An ordinary loan can exist without a promissory note. You can lend NOK 20,000 to your brother and have a Vipps message, text message and bank statement as evidence. It can still be a loan of money under § 5. The 10-year period can then apply to the loan itself.

A promissory note is more formal. It typically states that the debtor acknowledges owing a specific amount. It may state when the amount is to be paid. It may state interest. It may state instalments. The promissory note makes it easier to prove the claim.

The difference can matter if there is a dispute. With a clear promissory note, it becomes harder for the debtor to say the money was a gift. Without a promissory note, you may have to prove the loan with messages, bank transfers and witnesses.

However, the point of § 5 is not only evidence. The point is the time limit. When a promissory note has been issued, the period is 10 years. When the claim is based on a loan of money, the period is also 10 years for the loan claim itself. But if the claim is really an unpaid purchase price, an invoice or another agreement, it is not certain that § 5 applies.

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What happens if you get it wrong?

If you think the period is 10 years, but the claim is not actually a loan of money, you can lose the claim. An unpaid invoice is not automatically a loan of money. A purchase price is not always a loan. A purchase on instalments is not necessarily covered by § 5 either.

If you think interest has a 10-year period, you can also lose interest claims. § 5 says expressly that interest is excepted from the 10-year period for loans of money. This means you must follow up interest separately.

If you have no documentation, the problem may be evidence. Perhaps you really did lend out money. But if the other person says the money was a gift, you must be able to show it was a loan. A bank transfer with the text "loan" helps. A signed agreement helps more. A clear message about repayment also helps.

Always make a written loan agreement. It does not need to be complicated. Write who is borrowing, who is lending, the amount, the date, the repayment deadline and the interest. Also write whether the loan is to be repaid in instalments.

Use clear words. Do not write "help with housing" if it is really a loan. Write "loan". Do not write "we'll sort it out later" if you have a date. Write the date.

Follow up before the deadline approaches. If the debtor cannot pay, get a written acknowledgement of the debt. Write the amount. Write that the debtor acknowledges owing the money. Save the message.