Article 79 of the Saudi Commercial Court Law
المادة 79 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
The article allows any intervening person to pay the value of a bill of exchange on behalf of the drawer or an endorser after the necessary notice, with the intervention and its manner recorded in the notice instrument or at its foot.
Official text (Arabic)
This article has not been amended since the law was issued.
يجوز لأي شخص متوسط أن يدفع قيمة السفتجة عن الساحب أو عن أحد المحيلين بعده بعد عمل الإخطار اللازم ويثبت هذا التوسط وكيفيته في نفس سند الإخطار أو ذيله .
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 79 explained in plain English
This article regulates payment by intervention, that is, a person other than the drawee paying the value of the bill on behalf of one of those liable on it.
Who may intervene: any person.
On whose behalf: on behalf of the drawer, or of one of the endorsers after the drawer.
When: after the necessary notice is given, so intervention does not come before refusal is established by notice.
How it is documented: the intervention and its manner are recorded in the notice instrument itself or at its foot.
The benefit is that payment by intervention protects the reputation of the person on whose behalf it is made, spares them recourse claims, and the holder obtains their right. Recording it in the notice instrument makes it formally established.
Article 80 then sets out the effect of this payment on the intervening person: whoever intervenes to pay the value of a bill has all the holder's legal rights and duties transferred to them. The intervening person thus does not lose what they paid but takes the holder's place.
Before it, Article 78 provides that the commercial court may not grant a period of grace of its own for paying the value of a bill.
If you intend to pay on behalf of someone else by intervention, consult a lawyer who specializes in commercial paper to ensure correct documentation.
Practical example
The drawee refuses to pay a bill of exchange, and its holder gives notice. A friend of the drawer in Riyadh steps in and pays the value on the drawer's behalf, and this intervention and its manner are recorded at the foot of the notice instrument. This is a permitted payment by intervention under the 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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Frequently asked questions about Article 79 of the Saudi Commercial Court Law
Can another person pay a bill of exchange on behalf of the drawer?
Yes. Any intervening person may pay its value on behalf of the drawer or of one of the endorsers after him, after the necessary notice is given.
How is payment by intervention documented?
The intervention and its manner are recorded in the notice instrument itself or at its foot.
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.