Article 53 of the Saudi Commercial Papers Law
المادة 53 من نظام الأوراق التجارية · الفرع الثالث: المعارضة في الوفاء
Article 53 puts payment made on the due date by order of the competent body on the debtor's account, and discharges the surety after three years if no claim or action is made.
Official text (Arabic)
This article has not been amended since the law was issued.
الوفاء في ميعاد الاستحقاق بناء على أمر الجهة المختصة المشار إليها في المواد السابقة يكون في ذمة المدين. وتبرأ ذمة الكفيل المنصوص عليه في المواد 49 و50 و52 بمضي ثلاث سنوات إذا لم تحصل خلالها مطالبة ولا دعوى أمام الجهة المختصة التي يعينها وزير التجارة والصناعة.
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 53 explained in plain English
Article 53 sets out two rules that complete the provisions on a lost bill of exchange:
- Payment is on the debtor's account: payment on the due date by order of the competent body referred to in the preceding articles "is on the debtor's account."
- Discharge of the surety: the surety referred to in Articles 49, 50 and 52 is discharged after three years, if no claim or action is made during that time before the competent body designated by the Minister of Commerce and Industry.
The surety meant here is the one provided by the owner of the lost bill as a guarantee when claiming payment on a copy or a duplicate; Article 52, for example, requires, for requesting payment on a copy of the lost bill, an order of the competent body and a surety. This surety's obligation does not last indefinitely, but the surety is discharged after three years pass without a claim or action.
To know whether the period has been completed in a particular case, or the effect of a claim made during it, it is advisable to consult a lawyer specializing in commercial cases and commercial papers.
Practical example
Khalid provided a surety when he claimed payment of a lost bill on a copy of it by order of the competent body, and payment was made on the due date under that order, so under Article 53 this payment is on the debtor's account. Three years passed without anyone claiming the original bill or bringing an action before the competent body, so the surety was discharged.
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 53 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 53 of the Saudi Commercial Papers Law
What is the effect of paying a lost bill by order of the competent body?
Article 53 provides that payment on the due date by order of the competent body is on the debtor's account.
When does the surety's liability for a lost bill end?
The surety is discharged after three years if no claim or action is made during that time before the competent body designated by the Minister of Commerce and Industry.
Articles this article refers to
- Article 49
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.
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
- Article 50
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.
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 بوفائ
- Article 52
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.
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 ال
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.