Article 120 of the Saudi Commercial Papers Law
المادة 120 من نظام الأوراق التجارية · الفصل الثاني عشر: الجزاءات
The Article fines up to SAR 10,000 anyone who issues an undated or wrongly dated check, draws one on a non-bank, or pays or receives through clearing an undated check.
Official text after amendments (Arabic)
Compiled from the original text and every officially published amendment; the amendments are shown in full below for comparison.
مع مراعاة ما تقضي به الأنظمة الأخرى، يعاقب بغرامة لا تزيد على عشرة آلاف ريال:
أ - كل من أصدر شيكا لم يؤرخه أو ذكر تاريخا غير صحيح.
ب - كل من سحب شيكا على غير بنك.
ج - كل من وفى شيكا خاليا من التاريخ وكل من تسلم هذا الشيك على سبيل المقاصة.
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 120 explained in plain English
This Article sets a fine for formal violations relating to checks, and it was amended by Royal Decree No. (M/45) dated 12/9/1409 AH.
The penalty: a fine not exceeding SAR 10,000, subject to what other laws provide.
Who is punished:
- Anyone who issued a check without dating it or stated an incorrect date in it.
- Anyone who drew a check on a party other than a bank.
- Anyone who paid an undated check, and anyone who received such a check through clearing.
Note that the third item is not limited to the drawer; it includes whoever pays an undated check and whoever receives it through clearing.
This Article is linked to Article 119, which punishes a drawee that refuses in bad faith to pay a check that has cover, and to Article 121, which allows a judgment to order publication of the names of persons convicted under this Law. Anyone facing liability because of an undated check or one drawn on a non-bank would do well to consult a lawyer who specializes in criminal cases and check cases.
Practical example
The owner of an establishment in Riyadh gave a cleaner a check without writing a date on it. Under this Article, he exposes himself to a fine not exceeding SAR 10,000 because he issued a check without dating it, and the same fine applies to whoever pays this undated check and whoever receives it through clearing.
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 120 of the Saudi Commercial Papers Law
What is the penalty for issuing a check without a date?
A fine not exceeding SAR 10,000, and the same applies to anyone who states an incorrect date in the check.
Is a person who draws a check on a non-bank punished?
Yes, with a fine not exceeding SAR 10,000.
Is a person who pays an undated check punished?
Yes. The penalty covers anyone who paid an undated check and anyone who received it through clearing.
Amendment history
Royal Decree No. M/45 — 12/9/1409 AH
Official amendment text (Arabic)
عدلت هذه المادة بموجب المرسوم الملكي رقم (م/45) وتاريخ 12 / 9 / 1409 هـ ، لتكون كما يلى :
مع مراعاة ما تقضي به الأنظمة الأخرى، يعاقب بغرامة لا تزيد على عشرة آلاف ريال:
أ - كل من أصدر شيكا لم يؤرخه أو ذكر تاريخا غير صحيح.
ب - كل من سحب شيكا على غير بنك.
ج - كل من وفى شيكا خاليا من التاريخ وكل من تسلم هذا الشيك على سبيل المقاصة.
Royal Decree No. M/45 — 12/9/1409 AH
Official amendment text (Arabic)
تم إضافة المادة ( 121 ) بموجب المرسوم الملكي رقم (م/45) وتاريخ 12 / 9 / 1409 هـ ، كما يلى :
يجوز الحكم بنشر أسماء الأشخاص الذين يصدر بحقهم حكم بالادانة بموجب هذا النظام ويحدد الحكم كيفية ذلك.
Original text before the amendments (Arabic)
مع مراعاة أحكام الشريعة الإسلامية يعاقب بغرامة لا تزيد عن خمسمائة ريال:
أ - كل من أصدر شيكا لم يؤرخه أو ذكر تاريخا غير صحيح.
ب - كل من سحب شيكا على غير بنك.
جـ - كل من وفى شيكا خاليا من التاريخ، وكل من تسلم هذا الشيك على سبيل المقاصة.
More articles on Bounced Checks
- 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 118Amended by M/45
The Article punishes with up to 3 years' imprisonment or a fine of up to SAR 50,000, or both, anyone who commits in bad faith one of the specified check offenses, with a heavier penalty for repeat offenders.
مع مراعاة ما تقتضي به الأنظمة الأخرى، يعاقب بالحبس مدة لا تزيد على ثلاث سنوات وبغرامة لا تزيد على خمسين ألف ريال أو بإحدى هاتين العقوبتين كل من أقدم بسوء نية عل
- Article 119Amended by M/45
The Article fines a drawee up to SAR 100,000 if it refuses in bad faith to pay a valid check with cover and no opposition, or knowingly declares less cover than it holds.
مع مراعاة ما تقضي به الأنظمة الأخرى، يعاقب بغرامة لا تزيد على مائة ألف ريال كل مسحوب عليه رفض بسوء نية وفاء شيك مسحوب سحبا صحيحا وله مقابل وفاء ولم تقدم بشأنه أ
- Article 121
The Article allows a conviction judgment under the Commercial Papers Law to order publication of the convicted persons' names, the judgment determining how.
يجوز الحكم بنشر أسماء الأشخاص الذين يصدر بحقهم حكم بالادانة بموجب هذا النظام ويحدد الحكم كيفية ذلك.
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.