Article 69 of the Saudi Commercial Court Law
المادة 69 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 on its due date without notice or objection from anyone has made a valid payment and is discharged from it.
Official text (Arabic)
This article has not been amended since the law was issued.
من دفع قيمة السفتجة في ميعاد استحقاق دفعها من غير تنبيه أو معارضة من أحد يكون دفعه صحيحا وتبرأ ذمته منها.
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 69 explained in plain English
This article protects the person who pays a bill in good faith on its date. The ruling:
- Whoever pays the value of a bill on the due date for its payment,
- without notice or objection from anyone,
- has made a valid payment and is discharged from it.
The two conditions of protection are therefore: payment on the date, and the absence of notice or objection. If both are met, the payer is not asked to pay again.
If, however, a notice or an objection reached the payer before payment, the text does not give the payer this protection, and it is advisable to wait and learn the position before paying.
The meaning of this article becomes clear by comparing it with Article 68 before it, which makes whoever pays the value of a bill before its due date responsible for the validity of the payment. The Law thus encourages payment on the date and protects whoever abides by it.
It is followed by Article 70, which deals with payment on the basis of the second, third or fourth copy of the bill.
If you receive an objection to paying a bill due from you, consult a lawyer specializing in commercial paper before paying.
Practical example
The date of a bill of exchange arrived for a merchant in Riyadh, its holder presented it to him, and the merchant paid its value, having received no notice or objection from anyone. Under this article his payment is valid and he is discharged from it.
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 69 of the Saudi Commercial Court Law
When is payment of a bill of exchange valid and discharging?
If its value is paid on the due date for its payment without notice or objection from anyone.
What if I receive an objection before paying?
The protection in the article is conditional on there being no notice or objection, so it is advisable to consult a specialized lawyer before paying.
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.