Article 39 of the Saudi Commercial Papers Law
المادة 39 من نظام الأوراق التجارية · الفرع الأول: زمن الوفاء
Article 39 makes a bill of exchange payable at sight payable as soon as it is presented, requires presentment for payment within one year of its date, and allows this period to be altered.
Official text (Arabic)
This article has not been amended since the law was issued.
الكمبيالة المستحقة الوفاء لدى الاطلاع تكون واجبة الوفاء بمجرد تقديمها، ويجب أن تقدم للوفاء خلال سنة من تاريخها. وللساحب تقصير هذا الميعاد أو إطالته، وللمظهرين تقصيره. وللساحب أن يشترط عدم تقديم الكمبيالة المستحقة الوفاء لدى الاطلاع قبل انقضاء أجل معين وفي هذه الحالة يحسب ميعاد التقديم ابتداء من هذا الأجل.
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 39 explained in plain English
A bill of exchange payable "at sight" is one of the forms of maturity permitted by Article 38; it fixes no particular day for payment but is paid when presented. Article 39 regulates it as follows:
- Time of payment: it is payable as soon as it is presented.
- Period for presentment: it must be presented for payment within one year of its date.
- Altering the period: the drawer may shorten or lengthen this period, while endorsers may only shorten it.
- Postponing the start of presentment: the drawer may stipulate that it not be presented before a specified period has passed, and in that case the period for presentment is counted from that period.
This means that the holder of a bill payable at sight cannot delay presenting it indefinitely, but must comply with the year or with the period fixed by the drawer or an endorser. This article does not address the consequence of delay in presentment.
If in doubt about the period that applies to a particular bill, you can consult a lawyer specializing in commercial cases and commercial papers.
Practical example
Majed received a bill payable at sight dated 1 Muharram, in which the drawer wrote a condition that it not be presented before 3 months have passed. Under Article 39, Majed does not present it before the three months end, and the period for presentment, which is one year unless altered by the drawer or shortened by an endorser, is then counted from the end of that period.
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 39 of the Saudi Commercial Papers Law
When is a bill of exchange payable at sight paid?
It is payable as soon as it is presented.
What is the period for presenting a bill payable at sight?
It must be presented for payment within one year of its date; the drawer may shorten or lengthen this period and endorsers may shorten it.
May the drawer prevent presentment of the bill before a certain time?
Yes, the drawer may stipulate that it not be presented before a specified period has passed, and the period for presentment is then counted from the end of that period.
More articles on Payment of a Bill and Protest
- 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 11
Article 11 makes the drawer of a bill of exchange guarantee its acceptance and payment, and allows the drawer to stipulate exemption from guaranteeing acceptance but not payment.
يضمن صاحب الكمبيالة قبولها ووفاءها، ويجوز أن يشترط إعفاءه من ضمان القبول دون ضمان الوفاء.
- Article 15
Article 15 makes the endorser guarantee acceptance and payment of the bill of exchange unless otherwise stipulated, and lets the endorser prohibit re-endorsement, in which case the endorser does not guarantee to those who receive the bill by a later endorsement.
يضمن المظهر قبول الكمبيالة ووفائها ما لم يشترط غير ذلك. ويجوز له حظر تظهيرها من جديد، وفي هذه الحالة لا يكون ملزما بالضمان لمن تؤول إليهم الكمبيالة بتظهير لاحق.
- Article 20
Article 20 provides that an endorsement after the due date has the effects of an earlier endorsement, that one after protest for non-payment or after the protest deadline has the effects of an assignment of a right, and that backdating an endorsement is forgery.
التظهير اللاحق لميعاد الاستحقاق يرتب آثار التظهير السابق له، أما التظهير اللاحق لاحتجاج عدم الدفع أو الحاصل بعد انقضاء الميعاد المحدد لعمل هذا الاحتجاج فيرتب آث
- Article 24
Article 24 sets the form of acceptance of a bill of exchange, written on it with the word "accepted" or similar words and signed by the drawee, requires dating the acceptance in certain cases, and lets the holder record an undated acceptance by protest.
يكتب القبول على ذات الكمبيالة ويؤدى بلفظ (مقبول) أو بأية عبارة أخرى تفيد هذا المعنى ويوقعه المسحوب عليه، ويعتبر قبولا مجرد وضع المسحوب عليه توقيعه على صدر الكمب
- Article 27
Article 27 provides that where the drawer designates a place of payment other than the drawee's domicile without naming who is to pay there, the drawee may name that person at acceptance, failing which the acceptor must pay at the place of payment.
إذا عين الساحب في الكمبيالة مكانا للوفاء غير موطن المحسوب عليه دون أن يعين من يجب الوفاء عنده جاز للمسحوب عليه تعيينه عند القبول، فإذا لم يعينه اعتبر القابل ملز
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.