Article 61 of the Saudi Commercial Court Law
المادة 61 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
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.
Official text (Arabic)
This article has not been amended since the law was issued.
يؤرخ تحويل السفتجة ويذكر فيها أن قيمتها وصلت ويبين فيها اسم وشهرة من انتقلت تحت إذنه ويضع المحيل إمضاءه أو ختمه .
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 61 explained in plain English
After Article 60 established that ownership of bills of exchange passes by transferring them by endorsement on them, this article specifies the particulars the transfer must contain:
- The date: the transfer is dated.
- Receipt of value: it states that its value has been received.
- The beneficiary: it gives the name and surname of the person to whose order it passes.
- The signature: the endorser puts his signature or seal.
Each particular has its role: the date fixes when ownership passes, the statement that value was received shows that the transfer was made for consideration, the beneficiary's name identifies the new owner, and the signature ties the transfer to the endorser and makes him liable.
The importance of these particulars appears in Article 62, which provides that if a transfer does not meet the conditions set out in this article, it does not pass ownership but is treated as an ordinary authorization to collect its value. An error in these particulars may therefore turn a transfer from a transfer of ownership into a mere agency.
You should therefore check each particular when endorsing a bill or receiving one by endorsement. If you have a transfer whose validity is disputed, consult a lawyer specializing in commercial paper.
Practical example
A merchant in Riyadh transferred a bill of exchange to his supplier and wrote on the back of it: "I have transferred the value of this bill to the order of so-and-so, and the value has been received", then dated it and signed it. This transfer meets the particulars 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 61 of the Saudi Commercial Court Law
What details must be in the endorsement of a bill of exchange?
The date, a statement that the value was received, the name and surname of the person to whose order it passes, and the endorser's signature or seal.
What if one of the particulars of the transfer is missing?
Under Article 62, the transfer does not pass ownership but is treated as an ordinary authorization to collect its value.
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 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 .
- Article 64
The article permits payment of a bill's value, besides being secured by acceptance and transfer, to be guaranteed by a person as a guarantee in support, written on the bill itself or on a separate paper.
دفع قيمة السفتجة علاوة على كونه مضمونا بالقبول والتحويل يجوز ضمانه من شخص ضمانا احتياطيا ويكون ذلك بكتابه على نفس السفتجة أو في ورقة مستقلة .
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.