Article 40 of the Saudi Commercial Papers Law
المادة 40 من نظام الأوراق التجارية · الفرع الأول: زمن الوفاء
Article 40 sets the start of the maturity period of a bill payable at a fixed period after sight, and the rule for an undated acceptance where no protest is made.
Official text (Arabic)
This article has not been amended since the law was issued.
يبدأ ميعاد استحقاق الكمبيالة الواجبة الوفاء بعد مدة من الاطلاع من تاريخ قبولها أو من تاريخ الاحتجاج، فإذا لم يعمل الاحتجاج اعتبر القبول غير المؤرخ حاصلا بالنسبة إلى القابل في اليوم الأخير المقرر لتقديم الكمبيالة وفقا للمادة 22.
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 40 explained in plain English
A bill of exchange may be payable "at a fixed period after sight," for example payable 30 days after it is seen. The question is: from which day is this period counted? Article 40 answers:
- The period starts from the date of acceptance of the bill, or from the date of the protest.
- If the acceptance is undated and no protest was made, the acceptance is treated, as regards the acceptor, as having been given on the last day prescribed for presenting the bill under Article 22.
The purpose of this rule is to prevent uncertainty in fixing the maturity day when the acceptor fails to write the date of acceptance, so it is presumed that acceptance was given on the last day of the period for presentment. The text does not state the period for presentment itself but refers to Article 22 for it.
The holder of a bill is well advised to make sure the acceptance is dated when presenting it, to avoid relying on the presumption the article sets. Article 41 explains how periods fixed in months are calculated.
To fix the maturity day precisely in a particular case, you can consult a lawyer specializing in commercial cases and commercial papers.
Practical example
A company in Riyadh drew a bill of exchange payable 60 days after sight, and the drawee signed his acceptance without writing a date, and no protest was made. Under Article 40, the acceptance is treated as given, as regards him, on the last day prescribed for presenting the bill under Article 22, and the sixty days are counted from that day.
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 40 of the Saudi Commercial Papers Law
From when is the period of a bill payable at a fixed period after sight counted?
From the date of its acceptance or from the date of the protest.
What if the acceptance is undated?
If no protest was made, the undated acceptance is treated, as regards the acceptor, as given on the last day prescribed for presenting the bill under Article 22.
Articles this article refers to
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.