Article 115 of the Saudi Commercial Papers Law
المادة 115 من نظام الأوراق التجارية · الفصل التاسع: آثار إهمال الحامل (السقوط
The Article makes a check holder lose rights against the drawer, endorsers and others except the drawee if the presentment or protest periods lapse, with the drawer benefiting only on stated conditions.
Official text (Arabic)
This article has not been amended since the law was issued.
يفقد حامل الشيك ما له من حقوق قبل الساحب والمظهرين وغيرهم من الملتزمين -عدا المسحوب عليه- بمضي المواعيد المحددة لتقديم الشيك إلى المسحوب عليه أو لعمل الاحتجاج أو ما يقوم مقامه في الميعاد المقرر لذلك.
ومع ذلك لا يفيد الساحب من هذا الحكم إلا إذا كان قدم مقابل الوفاء، وظل هذا المقابل موجودا عند المسحوب عليه حتى انقضاء ميعاد تقديم الشيك، ثم زال المقابل بفعل غير منسوب إلى الساحب.
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 115 explained in plain English
This Article deals with the penalty for the negligence of the holder of a check.
The rule: the holder of a check loses the rights the holder has against the drawer, endorsers and other parties liable, with the exception of the drawee, if the following have passed:
- the periods prescribed for presenting the check to the drawee, or
- the period prescribed for making a protest or its equivalent.
The exception for the drawer: the drawer benefits from this forfeiture only if all of the following conditions are met:
- The drawer provided cover.
- That cover remained with the drawee until the presentment period of the check expired.
- The cover then ceased to exist through an act not attributable to the drawer.
If these conditions are not all met, the drawer remains liable despite the holder's delay. As for the endorsers and other parties liable, the holder's right against them lapses merely on the expiry of the periods.
After this Article comes Article 116, which sets the period for hearing recourse claims, and before it Article 114 on the drawee's liability. Anyone who has been late in presenting a check or proving its refusal would do well to consult a lawyer who specializes in commercial matters and commercial papers to learn what rights remain.
Practical example
Bandar received a check endorsed to him by a merchant and was late in presenting it to the bank until the presentment period expired. Under this Article, Bandar loses his rights against the endorsing merchant. The drawer benefits from this forfeiture only if he proves that he provided cover which remained until the end of the period and then ceased to exist through an act not attributable to him.
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 115 of the Saudi Commercial Papers Law
Do I lose my right if I am late in presenting the check?
The holder loses rights against the drawer, endorsers and other parties liable, other than the drawee, once the presentment or protest periods pass, subject to the conditions specific to the drawer.
When does the drawer benefit from the holder's delay?
If the drawer provided cover, it remained with the drawee until the presentment period expired, and it then ceased to exist through an act not attributable to the drawer.
Does the forfeiture include the drawee?
No. The Article excepts the drawee from the parties liable against whom the holder loses rights.
More articles on Loss of Holder's Rights and Limitation of Claims
- Article 64
Article 64 extends the time limits for presenting a bill and making a protest in case of force majeure, obliges the holder to give notice, and allows recourse without presentment or protest if the event lasts more than 30 days.
إذا حال حادث قهري لا يمكن التغلب عليه دون تقديم الكمبيالة أو عمل الاحتجاج في المواعيد المقررة لذلك امتدت هذه المواعيد. وعلى حامل الكمبيالة أن ينبه دون إبطاء من
- Article 83
The Article makes a negligent holder lose rights against the drawer, endorsers and others except the acceptor once presentment or protest periods lapse, and limits the drawer's benefit to proof that cover was provided.
يفقد الحامل حقوقه الناشئة عن الكمبيالة قبل ساحبها ومظهريها وغيرهم من الملتزمين عدا قابلها بمضي المواعيد المقررة لإجراء ما يأتي: أ - تقديم الكمبيالة المستحقة الو
- Article 84
The Article sets the periods after which bill claims are not heard: three years against the acceptor, one year for the holder's claims against the drawer and endorsers, and six months for endorsers' claims.
دون إخلال بحقوق الحامل المستمدة من علاقته الأصلية بمن تلقى عنه الكمبيالة، لا تسمع الدعوى الناشئة عن الكمبيالة تجاه قابلها بعد مضي ثلاث سنوات من تاريخ الاستحقاق
- Article 85
The Article provides that the bar periods for bill claims run from the last procedural step once a claim is brought, and do not run if a judgment is issued for the debt or the debtor acknowledges it in a way that renews it.
لا تسري المواعيد المذكورة في المادة السابقة في حالة إقامة الدعوى إلا من يوم آخر إجراء فيها ولا تسري هذه المواعيد إذا صدر حكم بالدين أو أقر به المدين في ورقة مست
- Article 86
The Article, as published, provides that interruption of the periods has no effect except as regards the person against whom the step interrupting them was taken.
لا يكون لانقطاع المواعيد أثر بالنسبة لمن اتخذ قبله الإجراء القاطع لهذه المواعيد.
- Article 116
The Article bars recourse claims by the check holder against those liable six months after the presentment period ends, and claims among those liable six months after payment or the start of the claim.
لا تسمع دعاوى رجوع الحامل على المسحوب عليه والساحب والمظهر وغيرهم من الملتزمين بعد مضي ستة شهور من تاريخ انقضاء ميعاد تقديم الشيك، ولا تسمع دعاوى رجوع الملتزمين
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.