Article 82 of the Saudi Commercial Court Law
المادة 82 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
Where several persons compete to pay by intervention, the article prefers the one whose payment discharges the most of those liable, and gives priority to the drawee for whom notice was given.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا تزاحم عدة أشخاص على الدفع بالتوسط يقدم منهم من يترتب على دفعه براءة المسئولين أكثر من غيره وإذا تقدم نفس المسحوب عليه الذي قد عمل له الإخطار يكون مقدما على غيره .
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 82 explained in plain English
This article deals with a rare but possible situation: several persons compete to pay by intervention. It sets two rules of preference:
- The general rule: the one whose payment discharges more of those liable than others is preferred.
- The special priority: if the drawee himself for whom notice was given steps forward, he is preferred over others.
The first rule is understood by reference to Article 81 before it: payment by intervention on behalf of the drawer discharges all the endorsers, whereas payment on behalf of one of the endorsers discharges only those after him. Whoever offers to pay on behalf of the drawer therefore achieves a wider discharge, and is preferred over one who offers to pay on behalf of an endorser.
The logic of the second rule is that the drawee is the one originally charged with payment, so if he steps forward to pay after notice has been given for him, he has priority over others.
The general aim of the article is to achieve the greatest benefit for the chain of those liable on the bill, by reducing the number who remain exposed to recourse.
It is followed by Article 83, which sets the time limits for the holder of a bill to demand its acceptance or payment according to the country from which it is drawn.
If you are a party to a competition over payment by intervention, consult a lawyer who specializes in commercial paper.
Practical example
The drawee refuses to pay and notice is given for him, and two persons step forward to pay by intervention: one on behalf of the drawer and the other on behalf of an endorser. The one who offers to pay on behalf of the drawer is preferred, because his payment discharges more of those liable. If the drawee himself came back and stepped forward to pay, he would be preferred over both.
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 82 of the Saudi Commercial Court Law
Who is preferred if several persons compete to pay by intervention?
The one whose payment discharges more of those liable than others.
Does the drawee have priority?
Yes. If the drawee himself for whom notice was given steps forward, he is preferred over others.
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.