Article 68 of the Saudi Commercial Court Law
المادة 68 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
The article provides that whoever pays the value of a bill of exchange before its due date is responsible for the validity of the payment.
Official text (Arabic)
This article has not been amended since the law was issued.
من دفع قيمة السفتجة قبل ميعاد استحقاقها فهو مسئول عن صحة الدفع
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 68 explained in plain English
This article deals with early payment of a bill of exchange from the payer's side. The rule: whoever pays the value of a bill before its due date is responsible for the validity of the payment.
This means that a payer who chooses to pay before the date bears the risk that the payment is valid, for example that it was made to the person actually entitled. If it turns out the payment was not valid, the payer cannot rely on having paid.
The picture is completed by the two neighboring articles:
- Article 67: the holder of a bill is not forced to receive its value before its due date, so early payment is not imposed on the holder.
- Article 69: whoever pays the value of a bill on its due date without notice or objection from anyone has made a valid payment and is discharged.
The comparison shows the rationale: payment on the date without objection protects the payer and discharges him, whereas payment before the date is a choice for which the payer bears responsibility.
If you intend to pay a bill before its date, check carefully to whom you are paying, and consult a lawyer specializing in commercial paper if in any doubt.
Practical example
A company in Jeddah paid the value of a bill before its date to a person who presented it, and it then turned out he was not the person entitled. Under this article the company is responsible for the validity of this payment because it paid before the due date.
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 68 of the Saudi Commercial Court Law
What is the responsibility of someone who pays a bill of exchange before its date?
Whoever pays the value of a bill before its due date is responsible for the validity of the payment.
What is the difference between early payment and payment on the date?
Under Article 69, whoever pays on the due date without notice or objection has made a valid payment and is discharged, whereas whoever pays before the date is responsible for the validity of the payment.
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.