Article 67 of the Saudi Commercial Court Law
المادة 67 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
The article provides that the holder of a bill of exchange is not forced to receive its value before its due date.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يجبر حامل السفتجة على استلام قيمتها قبل ميعاد استحقاقها .
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 67 explained in plain English
This article protects the holder's right to the due date. The rule: the holder of a bill of exchange is not forced to receive its value before its due date.
This means:
- That the date fixed in the bill is not for the debtor's benefit alone, but takes account of the holder as well.
- That the debtor cannot force the holder to collect the value early.
- That the holder may accept early payment if he wishes; the text prevents only forcing him, and does not prevent early payment if he agrees to it.
The holder has legitimate reasons to refuse early payment, such as having arranged to use the amount at a particular time.
This article comes after Article 66, which requires the value of a bill to be paid in the type of money specified in it, so the holder is protected in the type of payment and in its timing. The article does not address the effects of early payment if the holder accepts it, so no ruling on that can be inferred from it.
If you hold a bill and are offered payment before its date, or you are a debtor who wants to pay early, it is best to agree clearly, and to consult a lawyer specializing in commercial paper if in doubt.
Practical example
A merchant in Riyadh holds a bill of exchange due in three months, and the drawee offered to pay it today. Under this article the merchant is not forced to receive the value before its due date, and he may accept or refuse.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentCommercial & Corporate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Commercial & Corporate Law lawyers
Lawyers who handle this kind of case
Ibrahim Al Salem Law Firm
Active contributor
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Frequently asked questions about Article 67 of the Saudi Commercial Court Law
Is the holder of a bill of exchange forced to collect its value before its date?
No. The holder of a bill is not forced to receive its value before its due date.
May the holder accept early payment?
The text prevents only forcing him, so it does not prevent him from accepting early payment with his consent.
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.