Article 76 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 76 من اللائحة التنفيذية لنظام الإفلاس · الفصل الحادي عشر: أولوية الديون
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.
Official text (Arabic)
This article has not been amended since the law was issued.
يكون ترتيب أولوية الديون في كل من الأولويات الواردة في المادة (السادسة والتسعين بعد المائة) من النظام وفق ترتيبها في الأنظمة ذات العلاقة.
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 76 explained in plain English
This article opens the chapter on priority of debts in the Regulations, and addresses a precise question: how are debts ordered within each priority?
Article 196 of the Bankruptcy Law sets priorities for debts, and this article of the Regulations does not restate or change those priorities. It provides that if several debts fall in one priority, their order among themselves is according to their order in the relevant laws.
In practice this means two things:
- The priorities themselves are known from Article 196 of the Bankruptcy Law.
- The internal order within each priority is known from the other laws that regulate those debts, not from this article.
Therefore this article alone is not enough to know the position of a particular debt; one must refer to Article 196 of the Law and to the specific law that regulates that debt.
It is followed by Article 77, which counts the debtor's debts necessary for the continuation of its activity after the procedure opens as expenses during the procedure, and refers the priority of paying them to paragraph (e) of Article 196 of the Law.
Because determining the position of a debt requires reading more than one law, a creditor or debtor is advised to consult a lawyer who specializes in bankruptcy and commercial 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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Frequently asked questions about Article 76 of the Saudi Implementing Regulations of the Bankruptcy Law
Where are the priorities of debts in bankruptcy found?
In Article 196 of the Bankruptcy Law; this article of the Regulations regulates the order within each priority.
How are debts ordered within a single priority?
According to their order in the relevant laws.
Does this article change the priorities in the Law?
No. It refers to the priorities in Article 196 of the Law and indicates the reference for the order within each one.
More articles on Set-Off and Priority of Debts
- Article 54
This article specifies what the decision to distribute 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 74
This article makes the competent authority responsible for issuing the rules on multilateral set-off between regulated entities that carry on a financial activity.
تصدر الجهة المختصة القواعد المنظمة لإجراء عمليات المقاصة المتعددة الأطراف بين الكيانات المنظمة التي تمارس نشاطاً ماليًّا.
- 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 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.