Article 86 of the Saudi Commercial Court Law
المادة 86 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
The article requires refusal to pay a bill of exchange to be established by giving notice on the second day after the payment due date, with travel time to the notary public added and official holidays excluded.
Official text (Arabic)
This article has not been amended since the law was issued.
يلزم إثبات الامتناع عن الدفع بعمل الإخطار في اليوم الثاني لميعاد الدفع وتزاد عليه مدة المسافة التي بين محل حامل السفتجة ومركز تحرير الإخطار (كاتب العدل) ويستثنى من هذه المدة المقررة أيام الأعياد الرسمية
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 86 explained in plain English
This article sets the time for establishing refusal to pay. If the holder demands payment on the day the due date falls, as Article 85 requires, and the drawee refuses:
- Refusal must be established by giving notice.
- This is done on the second day after the payment due date.
- The travel time between the place of the holder of the bill and the place where the notice is drawn up (the notary public) is added to it.
- Official holidays are excluded from this prescribed period.
As a rule, the notice is given on the second day after the payment due date. But the Law takes account of the holder possibly being far from the notary public's seat, so it adds travel time. Official holidays are also not counted within the period.
The article does not state how travel time is calculated. Article 87 follows, providing that the holder of a bill, even if they have given notice of non-acceptance, is not excused from giving another notice of non-payment, except where the condition "recourse without expenses" applies.
Because the time limits for bills are exact and missing them may affect rights, it is advisable to consult a lawyer who specializes in commercial paper as soon as the drawee refuses to pay.
Practical example
The due date of a bill of exchange arrives, and its holder in Riyadh demands payment but the drawee refuses. The holder must give notice before the notary public on the second day after the payment due date, adding travel time if far from the notary public's seat, and without counting official holidays.
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 86 of the Saudi Commercial Court Law
When is notice of non-payment given?
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 added.
Are holidays counted in the period?
No. Official holidays are excluded from the prescribed period.
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.