Article 50 of the Saudi Commercial Papers Law
المادة 50 من نظام الأوراق التجارية · الفرع الثالث: المعارضة في الوفاء
Article 50 allows a person who has lost a bill of exchange and cannot present another copy to obtain an order for its payment, provided the person proves ownership and has it registered.
Official text (Arabic)
This article has not been amended since the law was issued.
يجوز لمن ضاعت منه الكمبيالة، سواء كانت مقبولة أو غير مقبولة، ولم يتمكن من تقديم إحدى نسخها الأخرى أن يستصدر من الجهة التي يعينها وزير التجارة والصناعة أمر بوفائها بشرط أن يثبت ملكيته لها وأن يقوم بقيدها.
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 50 explained in plain English
Article 50 deals with a harder case than Article 49: the bill of exchange is lost and its owner cannot present any other copy of it, either because it was drawn in only one copy or for another reason. The article provides:
- Who benefits: a person who has lost the bill, whether it was accepted or not.
- The procedure: he or she obtains from the body designated by the Minister of Commerce and Industry an order for its payment.
- The two conditions: that the person proves ownership of the bill, and has it registered.
The law does not make the owner's right disappear with the loss of the paper, but it requires what ensures he or she is really the rightful holder. The article does not set out the means of proving ownership or how registration is done; these matters are for the competent body.
This article is linked to Article 51, which requires the owner, if payment is refused after demand, to record that in a protest document drawn up on the day after the due date, even if the order could not be obtained in time.
Because proving ownership may require documents and procedures, it is advisable to seek the help of a lawyer specializing in commercial cases and commercial papers.
Practical example
Ahmed lost a single-copy bill of exchange due to him from a company in Khobar. Under Article 50, he can ask the body designated by the Minister of Commerce and Industry for an order for its payment, provided he proves he owns it and has it registered.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentA question about Article 50 of Commercial Papers Law?
Describe what happened and specialist lawyers answer. You can write in English.
- Completely free
- Lawyers from the directory answer
- Your name stays hidden
Commercial & Corporate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Commercial & Corporate Law lawyers
Lawyers who handle this kind of case
شركة امتداد النظام للمحاماة والاستشارات المهنية
- Labour & Employment Law
- Criminal Law
- Criminal Law
- Commercial & Corporate Law
Frequently asked questions about Article 50 of the Saudi Commercial Papers Law
Do I lose my right if I lose the bill of exchange and have no other copy?
No, you may obtain from the body designated by the Minister of Commerce and Industry an order for its payment, provided you prove your ownership of it and have it registered.
Is the rule different if the lost bill was accepted?
No, Article 50 applies whether the bill was accepted or not.
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.