Article 95 of the Saudi Commercial Court Law
المادة 95 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
The article gives the bill holder, after giving notice of non-payment, the right to attach the movables and debts of the drawer, acceptor or endorser as a precaution, through the commercial council.
Official text (Arabic)
This article has not been amended since the law was issued.
يحق لحامل السفتجة بعد عمل إخطار عدم الدفع إضافة على ما له من الحقوق أن يحجز منقولات وديون الساحب أو القابل أو المحيل حجزا احتياطيا بواسطة مجلس التجارة .
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 95 explained in plain English
This article gives the holder of a bill of exchange an additional means of protection: precautionary attachment.
When: after giving notice of non-payment.
Its nature: a right additional to the holder's other rights, so it does not cancel his other rights such as recourse against the drawer and endorsers.
What may be attached:
- Movables.
- Debts (that is, debts owed to the debtor by third parties).
Against whom: the drawer, the acceptor or the endorser.
Through: the commercial council.
The purpose of precautionary attachment is to secure for the holder that there is property from which he can be paid, before the debtor disposes of it. The text mentions movables and debts, and does not mention real estate.
The article does not set out the attachment procedures in detail or the conditions for lifting it. Note that it attributes the attachment to the commercial council, and the body competent for attachment today may differ from that stated in the text.
Before it, Article 94 restores the holder's right to claim if the payment sums reach one of those liable after the time limits have passed. Article 96 follows, stating who draws up the notice of non-acceptance and non-payment.
If you hold an unpaid bill and fear the debtor will dispose of his property, consult a lawyer who specializes in commercial paper or enforcement.
Practical example
A drawee in Jeddah refuses to pay a bill he accepted, and its holder gives notice of non-payment. Fearing the acceptor will dispose of his goods, the holder asks to have his movables attached as a precaution under this article.
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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Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Dr. Saleh Altayyar & Partners Law Firm
Frequently asked questions about Article 95 of the Saudi Commercial Court Law
Can the holder of a bill attach the debtor's property?
Yes. After giving notice of non-payment he may attach as a precaution the movables and debts of the drawer, acceptor or endorser.
Does attachment cancel the holder's other rights?
No. The text makes attachment additional to his other rights.
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.