Article 91 of the Saudi Commercial Court Law
المادة 91 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
The article gives each endorser the right to claim against whomever he has recourse to, individually or together, within the same time limits, which start for each from the date suit is brought against him.
Official text (Arabic)
This article has not been amended since the law was issued.
لكل واحد من المحيلين حق مطالبة من له الرجوع عليه بالانفراد أو الاجتماع في عين المواعيد المذكورة وتبتدئ هذه المواعيد بالنسبة لكل واحد منهم من تاريخ تقديم الدعوى عليه .
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 91 explained in plain English
This article passes the right of recourse from the holder to the endorsers themselves. An endorser who has been claimed against for the bill's value does not bear the burden alone, but may have recourse to those before him.
The rules:
- Each of the endorsers has the right to claim against whomever he has recourse to.
- This may be individually or together.
- Within the same time limits mentioned, that is, the time limits already set out, including those to which Article 90 refers.
- And these time limits start, for each of them, from the date suit is brought against him.
The last rule is important in practice: an endorser's time limit does not start from the bill's due date or from the first notice, but from the date suit was brought against him. This is fair, because an endorser does not know he needs recourse until he is claimed against.
Article 92 follows, providing that the holder of a bill has no right against the endorsers if the time limits set for presenting the bill, giving notice, or bringing suit and making the claim have passed.
If you are claimed against as an endorser, watch your time limit for recourse, and consult a lawyer who specializes in commercial paper.
Practical example
The holder of a bill claims against an endorser in Dammam for its value and brings suit against him on the first of the month. This endorser is entitled to claim against the one who transferred the bill to him, and his time limit in relation to that person starts from the date suit was brought against him.
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 91 of the Saudi Commercial Court Law
Can an endorser have recourse to those before him?
Yes. Each endorser has the right to claim against whomever he has recourse to, individually or together, within the same time limits mentioned.
When does an endorser's recourse period start?
From the date suit is brought against him.
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.