Article 113 of the Saudi Commercial Papers Law
المادة 113 من نظام الأوراق التجارية · الفصل الثامن: الشيك المسطر والشيك المقيد في الحساب
The Article lets the drawer or holder bar cash payment of a check with the words credit to account, so the drawee may settle it only by book entries, and striking out the words has no effect.
Official text (Arabic)
This article has not been amended since the law was issued.
يجوز لساحب الشيك أو لحامله أن يشترط عدم وفائه نقدا بأن يضع على صدره عبارة (القيد في الحساب) أو أية عبارة أخرى تفيد نفس المعنى.
وفي هذه الحالة لا يكون للمسحوب عليه إلا تسوية قيمة الشيك بطريق قيود كتابية كالقيد في الحساب أو النقل المصرفي أو المقاصة.
وتقوم هذه القيود مقام الوفاء ولا يعتد بشطب بيان (للقيد في الحساب).
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 113 explained in plain English
This Article regulates the check for credit to account, which is a check not paid in cash.
- Who may do this: the drawer of the check or its holder.
- How: by placing the words "credit to account" on the face of the check, or any other words with the same meaning.
- The effect: the drawee may only settle the value of the check by book entries, such as crediting an account, a bank transfer or clearing.
- The value of these entries: they stand in place of payment, so the debt is discharged by them as if the amount had been paid in cash.
- Striking out: striking out the words "credit to account" is of no effect, so the check remains a check for credit to account.
The practical benefit of this check is that it leaves a banking record of the payment and reduces the risk of its being cashed for someone other than its owner.
This Article is linked to Article 112 on payment of a crossed check, and is followed by Article 114, which makes the drawee liable for compensation for damage, not exceeding the amount of the check, if it does not observe the preceding rules. Anyone whose check was cashed despite these words may consult a lawyer who specializes in banking and commercial papers.
Practical example
A company in Riyadh wrote the words "credit to account" on a check it was giving to a contractor. Under this Article, the bank does not pay its value in cash but credits it to an account or transfers it through banking channels or clearing, and if anyone struck out the words, the striking out would have no effect.
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 113 of the Saudi Commercial Papers Law
What do the words "credit to account" on a check mean?
They mean the check is not paid in cash, and the drawee may only settle its value by book entries such as crediting an account, a bank transfer or clearing.
Can the words "credit to account" be cancelled by striking them out?
No. Striking out the words "credit to account" is of no effect.
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.