Article 58 of the Saudi Commercial Court Law
المادة 58 من النظام التجاري نظام المحكمة التجارية · الفصل السادس: في السفاتج ، سندات الحوالة المعبر عنها بالبوليسة والكمبيالة المتداولة بين التجار
The article requires a bill of exchange drawn at sight to be paid on presentation, and if a date or period for payment is stated in it, what is written in it is followed.
Official text (Arabic)
This article has not been amended since the law was issued.
السفاتج المسحوبة لدفع قيمتها حال الاطلاع يجب دفع قيمتها حال تقديمها أما إذا ذكر فيها تاريخ أو مهلة للدفع يتبع مقتضى ما حرر فيها .
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 58 explained in plain English
This article specifies the time of payment of a bill of exchange, and distinguishes between two types:
- A bill drawn payable at sight: its value must be paid on presentation. As soon as the holder presents it to the drawee, payment becomes due.
- A bill that states a date or period for payment: what is written in it is followed, meaning payment is on the written date or when the written period ends.
The reference in both cases is what is written in the bill itself: if payment at sight is stated, payment is due immediately on presentation, and if a date or period is fixed, it must be observed.
Article 59 follows, dealing with a special case in the timing: if the due date for payment falls on an official holiday, payment must be made on the day before.
Before it, Article 57 provides that the intervener is not bound to pay the value of the bill on the due date except after notice of non-payment is given within the set time, which shows the importance of knowing the due date precisely.
If you have a question about the due date of a particular bill, or a dispute about what is written in it, consult a lawyer specializing in commercial paper.
Practical example
A merchant in Riyadh holds two bills of exchange: the first reads "payable at sight", and the second "payable 90 days after its date". The first must be paid on presentation, while for the second what is written in it is followed, that is, after the ninety days have passed.
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 58 of the Saudi Commercial Court Law
When is a bill of exchange payable at sight paid?
Its value must be paid on presentation.
What if the bill states a specific date for payment?
What is written in it is followed, whether a date or a period for payment.
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.