Article 66 of the Saudi Commercial Court Law
المادة 66 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
The article requires the value of a bill of exchange to be paid in the type of money specified in it.
Official text (Arabic)
This article has not been amended since the law was issued.
يجب دفع قيمة السفتجة من نوع النقود المعينة 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 66 explained in plain English
This article lays down the rule on the currency of payment of a bill of exchange: its value must be paid in the type of money specified in it.
In practice, this means:
- If the bill specifies a particular type of money, payment is made in that type.
- The debtor, on the face of the text, cannot impose payment in another type of money.
The importance of this ruling is that the value of money may differ according to its type and exchange rate, so specifying the type of money in the bill protects the holder from a change in value and gives effect to what the parties agreed when they created it.
The article does not address the case where the type of money is not stated in the bill, nor does it state the ruling on a later agreement to pay in another type, so no ruling on these two questions can be inferred from it.
This article comes between Article 65, which makes the guarantor in support equal to the drawers and endorsers in guaranteeing payment jointly, and Article 67, which provides that the holder of a bill is not forced to receive its value before its due date. All are provisions on payment of a bill of exchange.
If a dispute arises about the type of money in which payment must be made, consult a lawyer specializing in commercial paper.
Practical example
A foreign supplier drew a bill of exchange on a company in Jeddah for a specified amount in US dollars. Under this article, its value must be paid in the type of money specified in it, that is, in dollars.
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 66 of the Saudi Commercial Court Law
In what currency is a bill of exchange paid?
The value of the bill must be paid in the type of money specified in it.
What if the type of money is not stated in the bill?
The article does not address this case, so it is advisable to consult a specialized lawyer.
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.