Article 49 of the Saudi Commercial Papers Law
المادة 49 من نظام الأوراق التجارية · الفرع الثالث: المعارضة في الوفاء
Article 49 allows payment of a lost bill of exchange to be claimed on another copy of it, and requires an order from the competent body and a surety if the accepted copy is lost.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا ضاعت كمبيالة غير مقبولة وكانت محررة من عدة نسخ جاز لمستحق قيمتها أن يطالب لوفائها بموجب إحدى نسخها الأخرى.
وإذا كانت الكمبيالة محررة من عدة نسخ وضاعت النسخة التي تحمل صيغة القبول لم تجز المطالبة بوفائها بموجب إحدى نسخها الأخرى إلا بأمر من الجهة التي يعينها وزير التجارة والصناعة، ويشرط تقديم كفيل.
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 49 explained in plain English
A bill of exchange may be drawn in several copies. If one is lost, Article 49 distinguishes between two cases:
- A bill not accepted: if it is lost and was drawn in several copies, the person entitled to its value may claim payment on another of its copies, with no additional procedure required by the text.
- Loss of the copy bearing acceptance: payment may not be claimed on another copy except by an order from the body designated by the Minister of Commerce and Industry, and on condition that a surety is provided.
The reason for the stricter rule in the second case is that the accepted copy carries the drawee's obligation, and may fall into the hands of someone else who claims on it, so the order and the surety are required to protect the payer. This article is linked to Article 48, which makes loss one of the few cases in which opposition to payment is allowed, and to Article 50, which deals with a person unable to present any other copy.
The article does not set out the procedures for requesting the order or the conditions for the surety, but refers to the body designated by the Minister.
Anyone who has lost a bill of exchange would do well to contact a lawyer specializing in commercial cases and commercial papers to learn the appropriate steps.
Practical example
A supplier in Riyadh received a bill of exchange drawn in two copies, and lost the copy bearing the drawee's signature of acceptance. Under Article 49, he cannot claim payment on the second copy directly, but needs an order from the body designated by the Minister of Commerce and Industry and must provide a surety.
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 49 of the Saudi Commercial Papers Law
What should I do if a copy of a bill of exchange is lost?
If the bill is not accepted and was drawn in several copies, the person entitled to its value may claim payment on another of its copies.
What is the rule if the copy bearing acceptance is lost?
Payment may not be claimed on another copy except by an order from the body designated by the Minister of Commerce and Industry and on condition that a surety is provided.
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.