Article 56 of the Saudi Commercial Papers Law
المادة 56 من نظام الأوراق التجارية · الفرع الرابع: الامتناع عن الوفاء. أولاً: الاحتجاج
Article 56 requires the holder to notify the drawer and the endorser who endorsed to the holder of non-acceptance or non-payment within four working days, and regulates the chain of notices and the consequence of delay.
Official text (Arabic)
This article has not been amended since the law was issued.
على حامل الكمبيالة أن يخطر ساحب الكمبيالة ومن ظهرها له بعدم قبولها أو بعدم وفائها خلال أربعة أيام العمل التالية ليوم عمل الاحتجاج أو لعدم تقديمها للقبول أو للوفاء إن اشتملت على شرط الرجوع بلا مصروفات أو (بدون احتجاج).
وعلى كل مظهر خلال يومي العمل التاليين ليوم تسلمه الإخطار أن يخطر من ظهر له الكمبيالة بتسلمه هذا الإخطار مبينا له أسماء وعناوين من قاموا بالإخطارات السابقة، وهكذا من مظهر إلى آخر حتى الساحب.
ويبدأ الميعاد بالنسبة إلى كل مظهر من التاريخ الذي تلقى فيه الإخطار. ومتى أخطر أحد الموقعين على الكمبيالة على الوجه المتقدم وجب كذلك إخطار ضامنه الاحتياطي في الميعاد ذاته. وإذا لم يعين أحد الموقعين على الكمبيالة عنوانه أو بينه بكيفية غير مقروءة اكتفى بإخطار المظهر السابق عليه. ولمن وجب عليه الإخطار أن يقوم به على أية صورة ولو برد الكمبيالة ذاتها. ويجب عليه إثبات قيامه بالإخطار في الميعاد المقرر له، ويعتبر الميعاد مرعيا إذا أرسل الإخطار في الميعاد المذكور بكتاب مسجل، ولا تسقط حقوق من وجب عليه الإخطار إذا لم يقدم به في الميعاد المبين آنفا، وإنما يلزمه عند الاقتضاء تعويض الضرر المترتب على إهماله بشرط لا يجاوز التعويض مبلغ الكمبيالة.
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 56 explained in plain English
Article 56 regulates informing those bound on the bill that it was not accepted or not paid, so that they can prepare for the holder's recourse against them:
- The holder's notice: the holder notifies the drawer and the person who endorsed the bill to him or her within four working days following the day the protest was made. If the bill contains a "recourse without expenses" or "without protest" clause, this period is counted from the day it was not presented for acceptance or payment, as the wording of the text puts it.
- The chain of notices: each endorser must, within two working days following the day he or she received the notice, notify the person to whom he or she endorsed, stating the names and addresses of those who gave the earlier notices, and so on until the drawer. The period for each endorser starts from the date he or she received the notice.
- The surety: once one of the signatories is notified, his or her surety must be notified within the same period.
- An unknown address: if a signatory did not state an address or wrote it illegibly, it is enough to notify the endorser before him or her.
- Form and proof of notice: it may be given in any form, even by returning the bill itself, and the person giving notice must prove he or she did so in time; the period is considered observed if the notice is sent within it by registered letter.
- The consequence of delay: the rights of a person who delays notice are not lost, but he or she must, where appropriate, compensate the damage caused by the neglect, provided the compensation does not exceed the amount of the bill.
This article is linked to Article 55, which sets the deadlines for protests, and to Article 57, which explains that a "without protest" clause does not relieve the holder of giving the necessary notices.
To document the notice in a way that can be proved, it is advisable to consult a lawyer specializing in commercial cases and commercial papers.
Practical example
Ahmed made a protest for non-payment of a bill of exchange on Sunday. Under Article 56, he must notify the drawer and the person who endorsed the bill to him within the next four working days, preferably by registered letter to prove the period was observed. If he is late, his right of recourse is not lost, but he may be required to compensate the damage resulting from his delay, within the amount of the bill.
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 56 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 56 of the Saudi Commercial Papers Law
What is the period for notifying the drawer that a bill was not paid?
Within four working days following the day the protest was made; where the bill contains a "recourse without expenses" or "without protest" clause, the period is counted as the text provides.
Do I lose my right if I am late giving notice?
Your rights are not lost, but you must, where appropriate, compensate the damage resulting from your neglect, provided the compensation does not exceed the amount of the bill.
How do I prove I gave notice on time?
The person bound to give notice must prove he or she did so within the period, and the period is considered observed if the notice is sent within it by registered letter.
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.