Article 55 of the Saudi Commercial Court Law
المادة 55 من النظام التجاري نظام المحكمة التجارية · الفصل السادس: في السفاتج ، سندات الحوالة المعبر عنها بالبوليسة والكمبيالة المتداولة بين التجار
The article permits, after notice of non-acceptance, another person to accept the bill on behalf of its drawer or an endorser, with the intervention recorded and the person intervened for informed immediately.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا عمل الإخطار لعدم القبول يجوز قبولها من شخص آخر متوسط عن صاحبها أو عن أحد المحيلين والمتناقلين ويكتب هذا التوسط في نفس السفتجة وسند الإخطار مع إمضاء المتوسط أو ختمه ويجب على المتوسط إعلان من توسط لأجله على الفور.
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 55 explained in plain English
This article regulates acceptance by intervention, a solution that preserves confidence in the bill of exchange when the drawee refuses to accept it.
The starting condition: the notice of non-acceptance must have been drawn up.
Who accepts: it may be accepted by another person who intervenes on behalf of:
- The owner of the bill (the drawer).
- Or one of the successive endorsers.
The form: the intervention is written:
- On the bill itself.
- And on the notice instrument.
- With the intervener's signature or seal.
The duty to announce: the intervener must immediately inform the person on whose behalf he intervened, so that the person knows what was done.
Article 54 before it requires a bill of exchange to be accepted on presentation or within twenty-four hours. Article 56 after it clarifies that all the holder's rights against the drawer and the endorsers remain preserved because of the drawee's non-acceptance, even if acceptance took place by an intervener. Intervention therefore does not remove the holder's rights against them.
If you are offered acceptance by intervention, or are going to intervene for someone else, consult a lawyer specializing in commercial paper.
Practical example
The drawee refused to accept a bill of exchange, and the holder had the notice drawn up. A merchant in Jeddah came forward as an intervener for the drawer and accepted the bill, writing his intervention on the bill and on the notice instrument and signing it, and then informed the drawer immediately of what he had done.
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 55 of the Saudi Commercial Court Law
What is acceptance by intervention?
It is acceptance of the bill of exchange by another person who intervenes on behalf of its owner or one of the endorsers, after the notice of non-acceptance has been drawn up.
How is acceptance by intervention recorded?
The intervention is written on the bill itself and on the notice instrument, with the intervener's signature or seal.
What is the intervener's duty after accepting?
The intervener must immediately inform the person on whose behalf he intervened.
More articles on The Draft and Bill of Exchange and Acceptance
- Article 42
The article sets the details required in a bill of exchange (safta): date, amount, drawee's name, date and place of payment, reason for the value and its receipt, and drawer's signature, and the rule for multiple copies.
سندات الحوالة أي السفاتج التي تسحب من محل على آخر يجب أن تؤرخ ويوضح فيها المبالغ المحولة واسم الشخص المحال عليه وتاريخ ومكان الدفع ويبين فيها أنها قيمة بضاعة أو
- Article 43
The article allows a bill of exchange to be drawn on one person with a condition that it be paid at the place of another person, and also allows it to be drawn at the order of a person on his account.
يجوز أن تسحب السفاتج على شخص ويشترط فيها الدفع في محل شخص آخر كما يجوز سحبها بأمر شخص على ذمته
- Article 44
The article provides that bills of exchange drawn contrary to the preceding conditions are considered only ordinary instruments.
السفاتج المحررة على خلاف الشروط الآنفة الذكر لا تعتبر إلا كسندات عادية .
- Article 45
The article requires that, when the payment date falls due, the drawee owe the transferor or the person who ordered the drawing an amount not less than the value of the bill.
عند حلول أجل دفع قيمة السفاتج يجب أن يكون في ذمة المحال عليه للمحيل أو للآمر بالسحب مبلغ لا يقل عن قيمة السفتجة .
- Article 46
The article makes acceptance sufficient proof that the acceptor owes the funds covering payment, and requires the drawer to prove the existence of the cover if it is denied, failing which the drawer guarantees the bill's value to the holder.
الشرح على السفتجة بالقبول دليل كاف على أن القابل مدين للساحب أو الآمر بالسحب بما يقابل الوفاء وعلى الساحب وحده أن يثبت في حالة الإنكار أو الامتناع عن الدفع بعد
- Article 47
The article regulates the holder's right to the cover for payment when the drawer goes bankrupt after acceptance, and when the drawee goes bankrupt after accepting, depending on the nature of the cover.
إذا أفلس الساحب بعد قبول المحال عليه ولو قبل حلول أجل الدفع فلحامل السفتجة دون غيره من غرماء الساحب الحق في استلام مقابل الوفاء الذي عند المسحوب عليه وإذا أفلس
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.