Article 74 of the Saudi Commercial Court Law
المادة 74 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
The article requires, to claim on another copy of a lost bill bearing the form of acceptance, producing a guarantor with a temporary guarantee of up to three years and an order from the Commerce Council.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا ضاعت السفتجة التي عليها صيغة القبول، فلا تجوز المطالبة بموجب أي نسخة أخرى إلا بعد إحضار كفيل ضامن كفالة مؤقتة إلى ثلاث سنوات وبعد الأمر من مجلس التجارة
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 74 explained in plain English
This article deals with the most delicate case in the loss of a bill: the loss of a bill bearing the form of acceptance. Here it is not enough to present another copy as in Article 73; the text requires two things before claiming on any other copy:
- Producing a guarantor whose guarantee is temporary, for up to three years.
- An order from the Commerce Council.
The rationale for the strictness is that the lost copy carries the acceptance obligation signed by the drawee, and it may appear in the hands of another person who claims on it. The guarantor secures the drawee against harm if the accepted copy appears later, and the Commerce Council's order adds oversight to the claim.
Note that the text does not set out the detailed procedures for obtaining the Commerce Council's order, nor what happens after the three years pass.
Article 75 follows, dealing with a case in which no other copy can be produced, and permitting a claim before the Commercial Court after proving ownership and giving a temporary guarantor for up to three years.
Because these procedures are delicate, anyone who has lost an accepted bill is advised to consult a lawyer specializing in commercial paper.
Practical example
A company in Jeddah lost the accepted copy of a bill of exchange, and it has the second copy. To claim on the second copy, under this article it must produce a guarantor with a temporary guarantee of up to three years, and an order must be issued by the Commerce Council.
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 74 of the Saudi Commercial Court Law
What is required to claim if an accepted bill of exchange is lost?
Producing a guarantor with a temporary guarantee of up to three years, and an order from the Commerce Council.
How long is the guarantee required?
A temporary guarantee of up to three years.
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.