Article 109 of the Saudi Commercial Papers Law
المادة 109 من نظام الأوراق التجارية · الفصل السادس: الامتناع عن الوفاء
The Article requires refusal to pay a check to be proved in the manner set in Article 108 before the presentment periods expire, or on the next working day if the check was presented on the last day.
Official text (Arabic)
This article has not been amended since the law was issued.
يجب إثبات الامتناع عن الدفع بالكيفية المنصوص عليها في المادة السابقة قبل انقضاء مواعيد التقديم، فإذا وقع التقديم في آخر يوم من هذا الميعاد جاز إثبات الامتناع عن الدفع في يوم العمل التالي.
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 109 explained in plain English
This Article specifies when the refusal to pay a check must be proved. The manner is as set out in Article 108: a protest, a statement issued by the drawee, or a statement issued by a recognized clearing house, written on the check, dated and signed.
The Article sets two rules:
- The rule: the refusal to pay must be proved before the presentment periods expire.
- The exception: if presentment took place on the last day of the period, the refusal to pay may be proved on the next working day.
This exception is consistent with what Article 108 provides, namely that the person obliged to make the statement may ask for a delay not exceeding the working day following presentment of the check, even if it was presented on the last day of the presentment period.
In practical terms, a holder who wants to preserve the right of recourse should not be content with presenting the check but should make sure the refusal is proved within the prescribed time. Anyone who has been late in proving it and wants to know their position would do well to consult a lawyer who specializes in commercial matters and commercial papers.
Practical example
Reem presented a check on the last day of its presentment period, and the bank did not pay it. Under this Article, the refusal to pay may be proved on the next working day, and it need not be done on the same day.
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 109 of the Saudi Commercial Papers Law
When must the refusal to cash a check be proved?
Before the periods for presenting the check expire.
What if I presented the check on the last day of the period?
The refusal to pay may be proved on the next working day.
Articles this article refers to
More articles on The Check
- Article 91
The Article lists the mandatory particulars of a check: the word check, an unconditional order to pay a fixed sum, the drawee's name, place of payment, date and place of issue, and the drawer's signature.
يشتمل الشيك على البيانات الآتية: أ - كلمة (شيك) مكتوبة في متن الصك باللغة التي كتب بها. ب - أمر غير معلق على شرط بوفاء مبلغ معين من النقود. جـ - اسم من يلزمه ال
- Article 92
The Article provides that an instrument lacking a check particular listed in Article 91 is not a check, unless the missing particular is the place of payment or the place of issue.
الصك الخالي من أحد البيانات المذكورة في المادة السابقة لا يعتبر شيكا إلا في الحالتين الآتيتين: أ - إذا خلا الشيك من بيان مكان وفائه اعتبر مستحق الوفاء في المكان
- Article 93
The Article requires checks issued in the Kingdom and payable there to be drawn on a bank, and treats instruments drawn on anyone other than a bank as invalid checks.
لا يجوز سحب الشيكات الصادرة في المملكة والمستحقة الوفاء فيها إلا على بنك، والصكوك المسحوبة في صورة شيكات على غير بنك لا تعتبر شيكات صحيحة.
- Article 94
The Article bars issuing a check unless the drawer has funds with the drawee that can be disposed of by check at the time of issue, and requires the drawer to prove cover if denied; lack of cover does not void the check.
لا يجوز إصدار شيك ما لم يكن للساحب لدى المسحوب عليه وقت إنشاء الشيك نقود يستطيع التصرف فيها بموجب شيك طبقا لاتفاق صريح أو ضمني. وعلى ساحب الشيك أو الآمر غيره بس
- Article 95
The Article allows a check to be payable to a named person with or without an order clause, to a named person with a not-to-order clause, or to bearer, and sets when a check counts as a bearer check.
يجوز اشتراط وفاء الشيك إلى: أ - شخص معين مع النص صراحة على شرط الأمر أو بدونه. ب - شخص معين مع ذكر شرط (ليس لأمر) أو أية عبارة أخرى تفيد هذا المعنى. جـ - حامل ا
- Article 96
The Article allows a check to be drawn to the drawer's own order or for another person's account, and bars drawing it on the drawer himself except between branches of one bank, provided it is not a bearer check.
يجوز سحب الشيك لأمر الساحب نفسه، ويجوز سحبه لحساب شخص آخر، ولا يجوز سحبه على الساحب نفسه ما لم يكن مسحوبا بين فروع بنك يسيطر عليه مركز رئيسي واحد ويشترط ألا يكو
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.