Article 89 of the Saudi Commercial Court Law
المادة 89 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
The article sets the time limits for claiming against drawers and endorsers inside the country, after notice, on bills drawn from inside payable abroad: three months, six months or a year depending on the country.
Official text (Arabic)
This article has not been amended since the law was issued.
بعد عمل الإخطار عن السفاتج المسحوبة من المملكة الحجازية المستحقة الدفع في الخارج تحصل مطالبة الساحبين والمحيلين في المملكة الحجازية في المواعيد الآتية :
1- ثلاثة أشهر لبلاد الجزيرة العربية ومصر وتركيا وسواحل البحر الأحمر .
2- ستة أشهر لسواحل البحر الأبيض المتوسط والهند البريطانية .
3- سنة كاملة لما عدا ذلك من البلدان .
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 89 explained in plain English
This article sets special time limits for recourse on a specific type of bill: those drawn from the Hejaz Kingdom, as the text puts it, and payable abroad. After notice is given, drawers and endorsers present in the Kingdom are claimed against within the following time limits:
- Three months: for the countries of the Arabian Peninsula, Egypt, Turkey and the coasts of the Red Sea.
- Six months: for the coasts of the Mediterranean and British India.
- A full year: for all other countries.
The reason for the differing time limits is to allow for the distance of the country in which the bill is payable, and the time that requires for correspondence and completing the procedures.
These time limits differ from the fifteen-day period that Article 88 before it sets for bringing suit from the date of the instrument acknowledging receipt of the notice. Article 90 follows, providing that if the holder of a bill claims against all the endorsers and the drawer together, they have, in relation to each of them, the time limit set out in this article.
The names of the countries reflect the time the Law was issued. If you deal in international bills, consult a lawyer who specializes in commercial paper and international trade to learn the applicable time limits.
Practical example
A merchant in Jeddah draws a bill payable in India, which is not paid, and its holder gives notice. Under this article, recourse against the drawer and endorsers in the Kingdom takes place within six months, because British India is among the countries of the second category.
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 89 of the Saudi Commercial Court Law
What are the time limits for claiming against the drawer on a bill payable abroad?
Three months for the countries of the Arabian Peninsula, Egypt, Turkey and the coasts of the Red Sea, six months for the coasts of the Mediterranean and British India, and a full year for any others.
When do these time limits start?
The text makes the claim, after notice is given, within the time limits mentioned.
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.