Q: Someone lent me money many years ago and never bothered asking for it. Must I still pay, even though many years have passed and the lender totally forgot about the loan?

A: In principle, there is no statute of limitations on a loan. However:

1) Some authorities maintain that if the lender does not ask for payment, the borrower is not required to initiate payment of his own accord. However, if the lender ultimately demands the loan, even many years later, it must be paid. Others maintain that, regardless, the borrower has a personal responsibility and mitzvah to pay his debts (see Shach 232:2; Pischei Choshen, Halva’ah 2:4).

2) If the lender abandoned hope of reclaiming the loan, there is a dispute whether the concept of yei’ush (despair) exists regarding a loan. Many authorities maintain that the concept of yei’ush does not apply to loans and they remain in force even after yei’ush (see C.M. 98:1; Rama 163:3; Pischei Choshen, 2:29).

3) If the loan was granted in a commercial setting, the concept of minhag hamedina (common commercial practice) would apply (Pischei Choshen, 2:ftnt. 72).