Article 76 of the Saudi Commercial Court Law
المادة 76 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
The article gives the owner of a lost bill of exchange the right to ask the endorser who transferred it to help obtain another copy, step by step back to the drawer, with the owner bearing the costs.
Official text (Arabic)
This article has not been amended since the law was issued.
يحق لمالك السفتجة الضائعة أن يطالب محيله في استحصال نسخة أخرى وعلى المحيل المذكور أن يساعده ويأذن له في استعمال اسمه في إجراء اللازم عند محيله الذي انتقلت إليه السفتجة منه، وهكذا من محيل إلى آخر إلى صاحب السفتجة وجميع المصاريف التي تلزم في ذلك تكون على مالك السفتجة الذي ضاعت منه.
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 76 explained in plain English
This article gives the owner of a lost bill of exchange a practical route to obtain another copy of it, through the chain of endorsers:
- The owner may ask the endorser who transferred it to them to help obtain another copy.
- That endorser must help them and authorize them to use their name in taking the necessary steps with the endorser from whom the bill came to them.
- And so from endorser to endorser until the request reaches the owner of the bill (the drawer).
Costs: all the costs this requires fall on the owner of the bill who lost it.
The idea is that the drawer is the one who can issue a new copy, and the route to the drawer passes through the endorsers one after another. The text obliges each endorser to cooperate but does not make them bear the cost, because the loss was the owner's.
This article follows Article 75, which provides that, if another copy cannot be produced, a claim may be made in court for the value of the lost bill after proving ownership and providing a temporary guarantor for up to three years.
If you have lost a bill of exchange and want to obtain a replacement copy, consult a lawyer who specializes in commercial paper to arrange the steps.
Practical example
A merchant in Riyadh loses a bill of exchange that he had received by transfer from a supplier. The merchant asks the supplier to help him obtain another copy, and the supplier authorizes him to use the supplier's name with the person to whom the supplier transferred it, and so on until the request reaches the drawer. The merchant bears all the costs.
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 76 of the Saudi Commercial Court Law
Must the endorser help me if my bill of exchange is lost?
Yes. The endorser must help the owner of the lost bill and authorize them to use their name in taking the necessary steps with their own endorser, and so on up to the owner of the bill.
Who bears the costs of obtaining the replacement copy?
All the costs fall on the owner of the bill who lost it.
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.