Article 99 of the Saudi Commercial Court Law
المادة 99 من النظام التجاري نظام المحكمة التجارية · الفصل التاسع: في الرجوع
The article allows a bill holder, after giving notice, to draw a new bill on the owner of the original bill or one of its endorsers to obtain its value and expenses; it is called a re-draft.
Official text (Arabic)
This article has not been amended since the law was issued.
يحق لحامل السفتجة بعد عمله الإخطار أن يسحب سفتجة جديدة على صاحب السفتجة الأصلية أو على أحد محيليها ليتحصل بها على قيمتها الأصلية وعلى المصاريف التي صرفها وتسمى هذه السفتجة الجديدة ( سفتجة الرجوع ) .
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 99 explained in plain English
This article provides the holder with a practical way to recover his right: the re-draft.
When: after giving the notice.
What it is: a new bill drawn by the holder of the original bill.
On whom: on the owner of the original bill (the drawer), or on one of its endorsers.
The purpose: to obtain through it:
- Its original value.
- The expenses he incurred.
The idea is that the holder can draw a new bill on the owner of the original bill or one of its endorsers, to obtain through it the original value and the expenses.
Article 100 then provides that the re-draft is accompanied by a re-exchange account statement containing the value of the original bill and a statement of the notice expenses and other expenses caused by the original bill, with the certificate of two well-known merchants placed on it.
Before it, Article 98 provides that no paper drawn up by merchants or others in the form of a certificate takes the place of the notice instrument, so the official notice must be given before a re-draft is drawn.
If you are thinking of drawing a re-draft, consult a lawyer who specializes in commercial paper.
Practical example
The drawee refuses to pay a bill held by a merchant in Jeddah, and he gives notice. He then draws a new bill on one of the endorsers covering the original value and the notice expenses. This is a re-draft under the 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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Frequently asked questions about Article 99 of the Saudi Commercial Court Law
What is a re-draft?
A new bill that the holder of the bill draws, after giving the notice, on the owner of the original bill or one of its endorsers, to obtain its original value and the expenses.
When may a re-draft be drawn?
After the holder gives the notice.
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.