Article 52 of the Saudi Commercial Papers Law
المادة 52 من نظام الأوراق التجارية · الفرع الثالث: المعارضة في الوفاء
Article 52 allows the owner of a lost bill to obtain a copy of it by going back through the endorsers to the drawer, and payment on the copy may be requested only by order of the competent body and with a surety.
Official text (Arabic)
This article has not been amended since the law was issued.
يجوز لمالك الكمبيالة الضائعة الحصول على صورة منها ويكون ذلك بالرجوع إلى من ظهر إليه الكمبيالة، ويلتزم هذا المظهر بمعاونته والإذن له في استعمال اسمه في مطالبة المظهر السابق، ويتسلسل الغالب في هذه المطالبة من مظهر إلى آخر حتى يصل إلى الساحب، ويلتزم كل مظهر بكتابة تظهيره على صورة الكمبيالة المسلمة من الساحب بعد التأشير عليها بما يفيد أنها بدل مفقود.
ولا يجوز طلب الوفاء بموجب هذه الصورة إلا بأمر من الجهة المختصة التي يعينها وزير التجارة والصناعة وبشرط تقديم كفيل. وتكون جميع المصرفات على مالك الكمبيالة الضائعة.
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 52 explained in plain English
Article 52 gives the owner of a lost bill of exchange a way to obtain a "replacement for a lost bill," following these steps:
- Going back to the person who endorsed the bill to the owner: this endorser is obliged to assist the owner and to permit the use of his or her name in claiming against the previous endorser.
- The sequence: the claim passes from one endorser to another until it reaches the drawer.
- Issuing the copy: the drawer hands over a copy of the bill marked to show that it is a replacement for a lost bill.
- Re-writing the endorsements: each endorser is obliged to write his or her endorsement on this copy.
But obtaining the copy is not enough in itself to claim the amount: payment on it may not be requested except by order of the competent body designated by the Minister of Commerce and Industry, and on condition that a surety is provided. All expenses fall on the owner of the lost bill.
This article is linked to Article 51, which requires the owner, on refusal of payment after demand, to record that in a protest document drawn up on the day after the due date. Article 53 also provides that the surety referred to in this article is discharged after three years if no claim or action is made during that time before the competent body.
To coordinate the claim among the endorsers and satisfy the conditions, it is advisable to seek the help of a lawyer specializing in commercial cases and commercial papers.
Practical example
A merchant in Jeddah lost a bill of exchange that a supplier had endorsed to him, and the supplier had received it by endorsement from a company that was the first beneficiary. The merchant went back to the supplier, who permitted him to use his name in claiming against the company, and the claim then reached the drawer, who handed over a copy marked as a replacement for a lost bill, and each endorser wrote his endorsement on it. To claim the amount on this copy, the merchant needs an order from the competent body and must provide a surety, and he bears all the expenses.
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 52 of the Saudi Commercial Papers Law
How do I obtain a replacement for a lost bill of exchange?
By going back to the person who endorsed the bill to you, with the claim passing from endorser to endorser up to the drawer, who hands over a copy marked as a replacement for a lost bill, and each endorser writes his or her endorsement on it.
Can I claim the amount directly on the copy?
No, payment on this copy may be requested only by order of the competent body designated by the Minister of Commerce and Industry and on condition that a surety is provided.
Who bears the expenses of obtaining a copy of a lost bill?
All expenses fall on the owner of the lost bill.
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.