Article 85 of the Saudi Commercial Court Law
المادة 85 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
The article requires the holder of a bill of exchange to demand payment of its value on the day the due date falls.
Official text (Arabic)
This article has not been amended since the law was issued.
يجب على حامل السفتجة أن يطلب دفع القيمة يوم حلول الميعاد .
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 85 explained in plain English
This article places a duty on the holder of a bill of exchange: to demand payment of the value on the day the due date falls.
This means it is not enough for the holder to wait for the drawee to bring them the amount; they must take the initiative to demand payment on the very day the due date falls, neither before nor after.
The importance of this duty is that demanding payment on the due date is the step on which the following steps are built. Article 86 after it requires refusal of payment to be established by giving notice on the second day after the payment due date, with the travel time between the holder's place and the place where the notice is drawn up (the notary public) added, and official holidays excluded. The time order is clear: demand payment on the due date, then give notice on the second day if the drawee refuses.
The article does not itself state the consequence of breaching this duty. Before it, Article 84 provides that conditions contrary to the provisions of the preceding article, agreed between the taker of the bill, its drawer and the endorsers, are given effect and carried out.
If you hold a bill of exchange, note its due date and demand payment on it. If you miss the due date, consult a lawyer who specializes in commercial paper to learn the effect.
Practical example
A merchant in Jeddah holds a bill of exchange due on the 15th of the month. Under this article, he must demand payment of its value on that very day.
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 85 of the Saudi Commercial Court Law
When must the holder of a bill of exchange demand payment?
On the day the due date falls.
What happens if the drawee refuses to pay?
Under Article 86, refusal must be established by giving notice on the second day after the payment due date, with travel time added and official holidays excluded.
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.