Article 74 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 74 من اللائحة التنفيذية لنظام الإفلاس · الفصل العاشر: المقاصة والديون التبادلية
This article makes the competent authority responsible for issuing the rules on multilateral set-off between regulated entities that carry on a financial activity.
Official text (Arabic)
This article has not been amended since the law was issued.
تصدر الجهة المختصة القواعد المنظمة لإجراء عمليات المقاصة المتعددة الأطراف بين الكيانات المنظمة التي تمارس نشاطاً ماليًّا.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 74 explained in plain English
This article of the Regulations deals with a special kind of set-off, which is multilateral set-off. It does not lay down detailed rules for it but refers its regulation to the competent authority.
The elements of the article:
- Subject: Multilateral set-off operations, that is, set-off in which more than two parties take part instead of only two.
- Scope: Set-off between regulated entities that carry on a financial activity specifically, not between just any persons.
- Who makes the rules: The competent authority, which issues the rules regulating how these operations are carried out.
In practice this means that the details of this set-off, including its conditions and how it is carried out, are not in this article but in the rules the competent authority issues. This article alone cannot be relied on to know how this set-off is carried out.
The article sits between Article 73, which prohibits automatic set-off based on a debt assignment that arose after the application to open any of the liquidation procedures was submitted, and Article 75, which makes automatic set-off take place according to the exchange rates at the Saudi Central Bank on the date the procedure opens.
Anyone who works in a financial entity and needs to know the rules that apply to it is best advised to consult a lawyer who specializes in banking, finance and bankruptcy cases.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Active contributorFrequently asked questions about Article 74 of the Saudi Implementing Regulations of the Bankruptcy Law
Who issues the rules on multilateral set-off in bankruptcy?
The competent authority issues them under this article.
To whom do the multilateral set-off rules apply?
To set-off operations between regulated entities that carry on a financial activity.
Does the article state how multilateral set-off is carried out?
No. It refers that to the rules the competent authority issues.
More articles on Set-Off and Priority of Debts
- Article 54
This article of the Regulations specifies the particulars the distribution decision to creditors in liquidation must contain, and allows the trustee to ask the court to amend it.
1 - يجب أن يتضمن قرار التوزيع على الدائنين الآتي: أ - بيان أصول التفليسة المبيعة وحصيلة بيعها. ب - بيان طريقة توزيع حصيلة بيع أصول التفليسة وتاريخ التوزيع. ج -
- Article 71
If selling the bankruptcy estate's assets yields proceeds sufficient for the expenses of liquidation or small debtors' liquidation, they are distributed starting with the Bankruptcy Committee's fees and expenses, then to the creditors.
إذا نتجت عن بيع أصول التفليسة حصيلة تكفي للوفاء بمصروفات إجراء التصفية أو التصفية لصغار المدينين، فيكون توزيعها وفقاً للترتيب الآتي: أ - أتعاب ومصروفات لجنة الإ
- Article 73
Automatic set-off based on a debt assignment that arose after the application to open any of the liquidation procedures was submitted is not permitted.
لا يجوز إجراء المقاصة التلقائية بناء على حوالة دين نشأت بعد تقديم طلب افتتاح أي من إجراءات التصفية.
- Article 75
Automatic set-off takes place according to the exchange rates at the Saudi Central Bank on the date the procedure opens.
تجرى المقاصة التلقائية وفقاً لأسعار الصرف لدى مؤسسة النقد العربي السعودي في تاريخ افتتاح الإجراء.
- Article 76
This article makes the order of debts within each priority listed in Article 196 of the Bankruptcy Law follow their order in the relevant laws.
يكون ترتيب أولوية الديون في كل من الأولويات الواردة في المادة (السادسة والتسعين بعد المائة) من النظام وفق ترتيبها في الأنظمة ذات العلاقة.
- Article 77
Debts of the debtor necessary for continuing its activity that arise after the bankruptcy procedure opens are counted as expenses during the procedure and paid according to paragraph (e) of Article 196 of the Law.
تعد ديون المدين اللازمة لاستمرار نشاطه -التي تنشأ بعد افتتاح إجراء الإفلاس- ضمن المصروفات أثناء الإجراء، وتكون أولوية سدادها وفقاً لحكم الفقرة (هــ) من المادة (
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.