Article 65 of the Saudi Commercial Court Law
المادة 65 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
The article makes the guarantor in support, for the owner of the bill or its endorser, equal to the drawers and endorsers in guaranteeing payment jointly, unless they stipulate otherwise.
Official text (Arabic)
This article has not been amended since the law was issued.
الضامن الاحتياطي سواء كان عن صاحب السفتجة أو محيلها يكون نظير الساحبين والمحيلين في الضمان بالوفاء على وجه التضامن مالم يوجد شرط بينهما بخلاف ذلك .
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 65 explained in plain English
This article specifies the position of the guarantor in support that Article 64 permitted. The ruling:
- The guarantor in support, whether for the owner of the bill or for its endorser,
- is equal to the drawers and endorsers,
- in guaranteeing payment jointly.
"Equal" means he stands at the same level: just as the drawers and endorsers are bound to pay jointly, so is the guarantor in support. The holder of the bill may claim payment from him as joint liability requires, and he is not merely a secondary guarantor to be turned to last.
The exception: this ruling applies unless there is a stipulation between them to the contrary. It is therefore permitted to agree to modify the guarantor's liability. The text says "between them" without expressly identifying the two parties to the stipulation.
Article 66 follows, requiring the value of the bill to be paid in the type of money specified in it.
Before you guarantee a bill for another, know that your liability is, in principle, joint like that of the drawer and endorsers. If you want a stipulation that defines your liability, consult a lawyer specializing in commercial paper to draft it.
Practical example
Khaled guaranteed a bill for its drawer as a guarantee in support, without any special stipulation. The bill was not paid on time, and its holder claimed its value from him. Under this article Khaled is equal to the drawers and endorsers in guaranteeing payment jointly.
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 65 of the Saudi Commercial Court Law
Is the guarantor of a bill of exchange responsible like the drawer?
Yes. The guarantor in support is equal to the drawers and endorsers in guaranteeing payment jointly.
Can the guarantor in support's liability be limited?
Yes. The ruling applies unless there is a stipulation between them to the contrary.
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.