Article 70 of the Saudi Commercial Court Law

المادة 70 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو

The article provides that payment of a bill of exchange on the basis of its second, third, fourth copy and so on is valid if that copy states that payment on it cancels the other copies.

Official text (Arabic)

This article has not been amended since the law was issued.

إذا دفعت قيمة السفتجة بناء على نسختها الثانية أو الثالثة أو الرابعة وهكذا يكون دفعه صحيحا إن كانت هذه النسخة مكتوبا فيها أن الدفع بناء عليها يلغى ما عداها من النسخ .

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 70 explained in plain English

A bill of exchange may be drawn in several copies, which raises a question: is payment on the basis of a copy other than the first valid? This article answers:

If the value of the bill is paid on the basis of its second, third, fourth copy and so on,
the payment is valid,
provided that the copy states that payment on it cancels the other copies.

The purpose of this condition is to prevent the value from being claimed more than once: the presence of the phrase in the copy announces to everyone who deals with it that payment under it cancels the other copies.

Article 71 follows with an important limit: if the value is paid on the basis of the second, third or fourth copy without recovering the copy bearing the form of acceptance, the payment is not valid and the payer is not discharged as against the holder of the accepted copy.

Before it, Article 69 provides that payment on the due date without notice or objection is valid and discharges the payer.

If you are going to pay on the basis of a copy other than the first, check that the cancellation phrase is present and what became of the accepted copy, and consult a lawyer specializing in commercial paper if in doubt.

Practical example

A merchant presented the second copy of a bill of exchange to a company in Dammam, and it stated that payment on it cancels the other copies. The company paid the value, and its payment is valid under this article.

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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