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Statute of Limitations
Explanation:
The period of time after an event occurs in which legal action based on that occurrence can be brought forth. Statutes of Limitations are common for certain crimes, lawsuits and financial transactions.
Statutes of Limitations vary by state and by the type of event in question. For example, lenders and collections agencies have to mind statutes of limitations when seeking to collect debt. Once a certain amount of time has elapsed since the last debt payment was made, collection efforts must be ceased. The exact length of time varies from 3-10 years for debt collections, depending on the state.