Article 100 of the Saudi Commercial Papers Law

المادة 100 من نظام الأوراق التجارية · الفصل الثالث: اعتماد الشيك

The Article bars the drawee from accepting a check, allows it to certify the check by a note that cover exists, and does not allow it to refuse certification where cover is sufficient.

Official text (Arabic)

This article has not been amended since the law was issued.

لا يجوز للمسحوب عليه أن يوقع على شيك بالقبول، وكل قبول مكتوب عليه يعتبر كأن لم يكن، ومع ذلك يجوز للمسحوب عليه أن يؤشر على الشيك باعتماده. وتفيد هذه العبارة وجود مقابل الوفاء في تاريخ التأشير، ولا يجوز للمسحوب عليه رفض اعتماد الشيك إذا كان لديه مقابل وفاء يكفي لدفع قيمته، ويعتبر توقيع المسحوب عليه على صدر الشيك بمثابة اعتماد له.

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 100 explained in plain English

This Article distinguishes between two matters that may be confused: acceptance and certification.

Acceptance is prohibited: the drawee may not sign the check as acceptor, and any acceptance written on a check is considered as if it had not been written.
Certification is permitted: the drawee may endorse the check with a note certifying it, and this note indicates the existence of cover on the date of the note.

The Article sets two rules that protect the drawer and the holder:

The drawee may not refuse to certify a check if it has cover sufficient to pay its value.
The drawee's signature on the face of the check is considered a certification of it.

In everyday life a certified check is known as a "marked" check, and many people ask for one in large sales transactions because the note indicates that the balance exists on its date. How long the balance remains blocked, or the procedures for certification at banks, are not addressed by this Article.

This Article follows Article 99 on circulation of a bearer check, and precedes Article 101 on aval. Anyone facing a bank's refusal to certify a check despite a sufficient balance may consult a lawyer who specializes in banking and commercial papers.

Practical example

Abdullah agreed to buy a car from a dealership in Jeddah, and the dealership asked for a certified check. Abdullah went to his bank and his balance was sufficient, so under this Article the bank may not refuse to certify the check, and the certification note indicates that cover existed on the date of the note.

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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