Article 112 of the Saudi Commercial Papers Law
المادة 112 من نظام الأوراق التجارية · الفصل الثامن: الشيك المسطر والشيك المقيد في الحساب
The Article restricts payment of a crossed check: a generally crossed check is paid only to a customer of the drawee or a bank, and a specially crossed one only to the named bank or its customer if it is the drawee.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يجوز للمسحوب عليه أن يوفي شيكا مسطرا تسطيرًا عاما إلا إلى أحد عملائه أو إلى بنك، ولا يجوز أن يوفي شيكا مسطرا تسطيرا خاصا إلا إلى البنك المكتوب اسمه فيما بين الخطين وإلى عميل هذا البنك إذا كان هذا الأخير هو المسحوب عليه، ومع ذلك يجوز للبنك المكتوب اسمه بين الخطين أن يعهد إلى بنك آخر قبض قيمة الشيك. ولا يجوز لبنك أن يحصل على شيك مسطر إلا من أحد عملائه أو من بنك آخر، ولا أن يقبض قيمته لحساب أشخاص آخرين غير من ذكر.
وإذا حمل الشيك عدة تسطيرات خاصة لم يجز للمسحوب عليه وفاؤه إلا إذا كان يحمل تسطيرين وكان أحدهما لتحصيل قيمته بواسطة غرفة مقاصة .
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 112 explained in plain English
This Article explains the effect of crossing on payment of a check, after Article 111 defined general and special crossing.
- A generally crossed check: the drawee may pay it only to one of its customers or to a bank.
- A specially crossed check: it may be paid only to the bank whose name is written between the lines, and to a customer of that bank if that bank is the drawee. The named bank may entrust another bank with collecting the value of the check.
The Article also places restrictions on banks:
- A bank may obtain a crossed check only from one of its customers or from another bank.
- It may not collect its value for the account of persons other than those mentioned.
Several special crossings: if a check bears several special crossings, the drawee may not pay it, unless it bears two crossings and one of them is for collection of its value through a clearing house.
It is linked to Article 113 on the check to be credited to an account. Anyone harmed by payment of a crossed check to someone not entitled to it may consult a lawyer who specializes in banking and commercial papers.
Practical example
Yousef received a generally crossed check drawn on a bank where he has no account. Under this Article, he cannot cash it in cash from the drawee bank because he is not its customer, but he can deposit it with his own bank so that bank collects it.
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 112 of the Saudi Commercial Papers Law
Can a crossed check be cashed over the counter?
The drawee may pay a generally crossed check only to one of its customers or to a bank, and a specially crossed check only to the bank whose name is written, or to its customer if that bank is the drawee.
May the bank named in the crossing collect through another bank?
Yes. It may entrust another bank with collecting the value of the check.
What is the rule for a check bearing several special crossings?
The drawee may not pay it, unless it bears two crossings and one of them is for collection through a clearing house.
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.