Article 100 of the Saudi Commercial Court Law
المادة 100 من النظام التجاري نظام المحكمة التجارية · الفصل التاسع: في الرجوع
The article requires a re-draft to be accompanied by an account statement covering the original bill's value, the notice expenses and others, with the certificate of two well-known merchants placed on it.
Official text (Arabic)
This article has not been amended since the law was issued.
ترفع سفتجة الرجوع بقائمة حساب الرجوع المشتمل على قيمة السفتجة الأصلية وعلى بيان مصاريف الإخطار وغيره من المصاريف التي تسببت عن السفتجة الأصلية وتوضع عليها شهادة تاجرين معروفين .
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 100 explained in plain English
This article specifies what accompanies the re-draft that Article 99 permitted. The re-draft is presented with a re-exchange account statement, and this statement contains:
- The value of the original bill.
- A statement of the notice expenses.
- Other expenses caused by the original bill.
Then the certificate of two well-known merchants is placed on it.
The purpose of the statement is for the drawee on the re-draft to know the details of the amount claimed: how much of it is the original value and how much is expenses. Note that the text limits expenses to those caused by the original bill, so expenses unrelated to it are not included.
The certificate of the two well-known merchants gives the statement a degree of credibility. Here it is a certificate on the re-exchange account, and it does not take the place of the notice instrument that must be drawn up before a re-draft is drawn, under Article 99.
Article 101 follows, barring the making of several statements for the re-exchange account of one bill, and providing that this account is paid from endorser to endorser in sequence until it is finally paid by the drawer.
If you are preparing a re-exchange account or being claimed under one, consult a lawyer who specializes in commercial paper.
Practical example
A merchant in Dammam draws a re-draft on an endorser and attaches a statement showing the original value of SAR 50,000, the notice expenses and the other expenses caused by the bill, and two well-known merchants sign the statement. This matches what the article requires.
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 100 of the Saudi Commercial Court Law
What does a re-exchange account statement include?
The value of the original bill, a statement of the notice expenses and other expenses caused by the original bill.
Does the re-exchange statement need a certificate?
Yes. The certificate of two well-known merchants is placed on it.
More articles on Endorsement, Payment and Recourse on the Draft
- Article 51
The article makes the drawer of a bill of exchange and the endorsers who transferred it jointly liable for its acceptance and for payment on time, and jointly bound to pay its holder.
صاحب السفتجة والمحيلون المتناقلون لها مسئولون على وجه التضامن عن القبول والدفع في ميعاده وملزمون لحاملها بالوفاء على وجه التضامن
- Article 57
The article provides that the intervener is not bound to pay the bill's value on the due date except after notice of non-payment has been given within the set time.
لا يجب على المتوسط المذكور دفع قيمة السفتجة في ميعاد استحقاق الدفع إلا بعد عمل الإخطار بعدم الدفع في الميعاد المحدود .
- Article 60
The article provides that ownership of bills of exchange passes from one person to another by transferring them by endorsement on them.
تنتقل ملكية السفاتج من واحد لآخر بتحويلها شرحا عليها .
- Article 61
The article sets the particulars of a bill's transfer: the date, a statement that value has been received, the name and surname of the person to whose order it passes, and the endorser's signature or seal.
يؤرخ تحويل السفتجة ويذكر فيها أن قيمتها وصلت ويبين فيها اسم وشهرة من انتقلت تحت إذنه ويضع المحيل إمضاءه أو ختمه .
- Article 62
The article provides that a transfer of a bill of exchange that does not meet the conditions of Article 61 does not pass ownership but counts as an ordinary authorization to collect its value.
إذا لم يستوف تحويل السفتجة شرائطه المبينة في المادة السابقة فلا يوجب انتقال الملك بل يعد توكيلا اعتياديا في قبض قيمتها .
- Article 63
The article prohibits putting dates in transfers ahead of their true date, and treats that as forgery if it occurs.
تقديم التواريخ في التحاويل عن تاريخها الحقيقي ممنوع وإن حصل يعد ذلك تزويرا .
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.