Article 252 of the Saudi Civil Transactions Law
المادة 252 من نظام المعاملات المدنية · الفصل الثاني: حوالة الدين
The assigned debt keeps its guarantees after the assignment, except guarantees provided by third parties, and jointly liable debtors remain bound after deducting the assignor's share.
Official text (Arabic)
This article has not been amended since the law was issued.
تبقى للدين المحال به ضماناته، ومع ذلك لا تبقى الضمانات المقدمة من الغير، ويبقى المدينون المتضامنون ملتزمين بعد خصم حصة المحيل من الدين.
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 252 explained in plain English
This Article determines the fate of the guarantees that protected the creditor when the debt moves from the assignor (the original debtor) to the person assigned to (the new debtor). It sets three rules:
- In principle the guarantees remain: The assigned debt keeps its guarantees, so the creditor does not lose what secured his right merely because the debtor changed.
- Guarantees provided by third parties do not remain: If the guarantee was provided by a person other than the debtor, such as a surety or a person who pledged his property to secure another's debt, this guarantee does not remain after the assignment. The reason is that this person gave his guarantee for a particular debtor, and the guarantee of a new debtor is not imposed on him.
- Jointly liable debtors: If there are jointly liable debtors with the assignor, they remain bound, but after deducting the assignor's share of the debt.
This Article supplements the rule of Article 251, which transfers the debt to the person assigned to with its attributes and accessories and releases the assignor; Article 252 shows that this transfer does not carry with it guarantees provided by third parties.
It follows that a creditor who is offered acceptance of an assignment of a debt that is guaranteed by another person should realize that, by the text of the Article, this suretyship will not remain after the assignment; if he wants the guarantee to continue, he must arrange this with the guarantor. The Article also protects the surety and the third-party pledgor from an obligation they did not agree to.
To assess the effect of an assignment on a particular guarantee, it is advisable to consult a lawyer specializing in civil cases.
Practical example
Badr borrowed a sum from a company in Riyadh, and his friend Yusuf stood surety for him. The assignment of the debt to another person then took effect. Under the Article, Yusuf's suretyship does not remain because it is a guarantee provided by a third party, whereas the guarantees Badr himself provided for the debt remain for the assigned debt.
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 252 of the Saudi Civil Transactions Law
Does the surety remain bound after assignment of the debt?
No. The Article provides that guarantees provided by third parties do not remain after the assignment.
Do all of the debt's guarantees fall away on assignment?
No. In principle the assigned debt keeps its guarantees, except those provided by a third party.
What is the rule for debtors jointly liable with the assignor?
They remain bound after deducting the assignor's share of the debt.
More articles on Assignment of Rights and Debts
- Article 238
The Article allows a creditor to assign his right to another person unless legal provisions, agreement or the nature of the obligation prevent it, and does not require the debtor's consent for the assignment to be concluded.
للدائن أن يحيل حقه إلى شخص آخر، وذلك ما لم تقتضِ النصوص النظامية أو الاتفاق أو طبيعة الالتزام خلاف ذلك، ولا يشترط لانعقاد الحوالة رضى المدين بها.
- Article 239
The Article limits the validity of an assignment of a right to the portion that is attachable, so what cannot be attached cannot validly be assigned.
لا تصح حوالة الحق إلا بقدر ما يكون منه قابلًا للحجز.
- Article 240
The Article requires, for an assignment to be enforceable against the debtor and third parties, that the debtor accept it or be notified of it by a lawful means, and that acceptance relied on against third parties be in writing with a certain date.
لا تكون حوالة الحق نافذة تجاه المدين أو تجاه الغير إلا إذا قبلها المدين أو أُعلِم بها بأي وسيلة مقررة نظامًا، على أن نفاذها تجاه الغير بقبول المدين يستلزم أن يك
- Article 241
The Article provides that the assigned right passes to the assignee with its attributes, accessories and guarantees as it was with the assignor.
ينتقل الحق إلى المحال له بصفاته وتوابعه وضماناته.
- Article 242
The Article determines the assignor's guarantee: in an assignment for consideration he guarantees the existence of the right at the time it is concluded unless otherwise agreed, and in an assignment without consideration he does not guarantee its existence.
1- إذا كانت الحوالة بعوض، لم يضمن المحيل إلا وجود الحق المحال به وقت انعقاد الحوالة، ما لم يتفق على خلاف ذلك. 2- إذا كانت الحوالة بغير عوض، لم يضمن المحيل وجود
- Article 243
The assignor does not guarantee the debtor's solvency except by special agreement, and if he guarantees it, the guarantee applies to solvency at the time the assignment is concluded unless otherwise agreed.
لا يضمن المحيل يسار المدين إلا إذا وجد اتفاق خاص على هذا الضمان، وإذا ضمن المحيل يسار المدين لا ينصرف هذا الضمان إلا إلى اليسار وقت انعقاد الحوالة ما لم يتفق عل
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.

