Article 28 of the Saudi Commercial Papers Law
المادة 28 من نظام الأوراق التجارية · الفصل الثالث: قبول الكمبيالة
Article 28 makes the drawee who accepts a bill of exchange bound to pay its value on the due date, and gives the holder, even if the drawer, a direct action against the acceptor for everything that may be claimed under Articles 60 and 61.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا قبل المسحوب عليه الكمبيالة صار ملزما بوفاء قيمتها في ميعاد استحقاقها، فإذا امتنع عن الوفاء كان للحامل - ولو كان هو الساحب نفسه - مطالبة المسحوب عليه القابل بدعوى مباشرة ناشئة عن الكمبيالة بكل ما تجوز المطالبة به بمقتضى المادتين (60) و(61).
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 28 explained in plain English
This article explains the effect of acceptance of a bill of exchange on the drawee:
- The obligation to pay: once the drawee accepts the bill, he or she becomes bound to pay its value on its due date.
- The direct action: if the drawee refuses to pay, the holder may claim against him or her by a direct action arising from the bill.
- Even if the holder is the drawer: the article expressly states that this right belongs to the holder even if he or she is the drawer.
- The scope of the claim: the holder may claim everything that may be claimed under Articles 60 and 61 of the law.
This article does not detail what Articles 60 and 61 contain, so their text should be consulted to learn what may be claimed.
The practical benefit is that the holder can go directly against the accepting drawee on an action arising from the bill if he or she refuses to pay. Before it, Article 27 explains how the place of payment is designated at acceptance, and Article 29 addresses the drawer's duty to provide funds with the drawee.
Anyone wishing to claim against an accepting drawee who has refused to pay would do well to consult a lawyer specializing in commercial cases and commercial papers.
Practical example
A merchant in Jeddah accepted a bill of exchange for SAR 60,000 due on a fixed date, then refused to pay when it fell due. Under Article 28, the holder of the bill, even if he is the drawer himself, may bring a direct action arising from the bill against the merchant for everything Articles 60 and 61 allow to be claimed.
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 28 of the Saudi Commercial Papers Law
What is the effect of the drawee accepting a bill of exchange?
The drawee becomes bound to pay its value on its due date.
May the drawer claim against the accepting drawee?
Yes, the holder may bring a direct action arising from the bill against the drawee even if the holder is the drawer himself or herself.
What may the holder claim from the accepting drawee?
Everything that may be claimed under Articles 60 and 61 of the law.
Articles this article refers to
- Article 60
Article 60 sets what the holder claims on recourse, namely the principal amount and expenses, less the official discount rate if recourse is before maturity.
لحامل الكمبيالة مطالبة من له حق الرجوع عليه بما يأتي: أ - أصل مبلغ الكمبيالة غير المقبولة أو غير المدفوعة. ب - مصروفات الاحتجاج والإخطارات وغير ذلك من المصروفات
- Article 61
Article 61 allows a person who paid a bill of exchange to claim from his or her guarantors the whole amount paid and the expenses incurred.
يجوز لمن وفى بكمبيالة أن يطالب ضامنيه بما يأتي: أ - كل المبلغ الذي وفاه. ب - المصروفات التي تحملها.
More articles on Bill of Exchange
- Article 1
The article sets out the eight particulars a bill of exchange must contain, including the word "bill of exchange", the amount, the name of the drawee, the due date and the drawer's signature.
تشتمل الكمبيالة على البيانات الآتية: أ - كلمة (كمبيالة) مكتوبة في متن الصك وباللغة التي كتب بها. ب - أمر غير معلق على شرط بوفاء مبلغ معين من النقود. ج - اسم من
- Article 2
An instrument lacking the particulars of Article 1 is not a bill of exchange, except where the due date, place of payment, drawee's domicile or place of issue is missing, each of which has a substitute rule.
لا يعتبر الصك الخالي من البيانات المذكورة في المادة السابقة كمبيالة إلا في الأحوال الآتية: أ - إذا خلت الكمبيالة من بيان ميعاد الاستحقاق، اعتبرت مستحقة الوفاء ل
- Article 3
The article permits three ways of drawing a bill of exchange: to the drawer's own order, on the drawer himself, or for the account of another person.
يجوز سحب الكمبيالة لأمر الساحب نفسه، ويجوز سحبها على ساحبها، ويجوز سحبها لحساب شخص آخر.
- Article 4
The article permits stipulating that a bill of exchange be paid at the domicile of a person other than the drawee, whether in the drawee's town or in another.
يجوز اشتراط وفاء الكمبيالة في موطن شخص آخر غير المسحوب عليه سواء كان هذا الموطن في الجهة التي فيها موطن المسحوب عليه أو في جهة أخرى.
- Article 5
If the amount of a bill written in words differs from the amount in figures, the words prevail; if the amount is written several times and differs, the smaller amount prevails.
إذا كتب مبلغ الكمبيالة بالحروف وبالأرقام معا فتكون العبرة عند الاختلاف بالمكتوب بالحروف، وإذا كتب المبلغ عدة مرات بالحروف أو بالأرقام فتكون العبرة عند الاختلاف
- Article 6
Article 6 provides that any stipulation of interest on the amount of a bill of exchange is treated as if it had not been written.
اشتراط فائدة الكمبيالة يعتبر كأن لم يكن.
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.