Article 60 of the Saudi Commercial Papers Law
المادة 60 من نظام الأوراق التجارية · الفرع الرابع: الامتناع عن الوفاء. أولاً: الاحتجاج
Article 60 sets what the holder claims on recourse, namely the principal amount and expenses, less the official discount rate if recourse is before maturity.
Official text (Arabic)
This article has not been amended since the law was issued.
لحامل الكمبيالة مطالبة من له حق الرجوع عليه بما يأتي:
أ - أصل مبلغ الكمبيالة غير المقبولة أو غير المدفوعة.
ب - مصروفات الاحتجاج والإخطارات وغير ذلك من المصروفات.
وفي أحوال الرجوع قبل ميعاد استحقاق الكمبيالة يجب أن يستنزل من قيمتها ما يساوي سعر الخصم الرسمي في تاريخ الرجوع بالمكان الذي يقع فيه موطن الحامل.
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 60 explained in plain English
After Article 59 explained when the holder may have recourse against those bound on the bill, Article 60 sets what the holder may claim:
- The principal amount: the principal amount of the bill that was not accepted or not paid.
- Expenses: the expenses of the protest and notices and other expenses.
Recourse before maturity: if the holder has recourse before the due date of the bill, as in the cases of refusal of acceptance or the drawee's bankruptcy mentioned in Article 59, an amount equal to the official discount rate on the date of recourse, in the place where the holder is domiciled, must be deducted from its value.
The reason for this deduction is that the holder receives the amount before its due date, so what corresponds to early payment is deducted from it. The article does not fix the official discount rate but ties it to the rate in force on the date of recourse and the place of the holder's domicile.
Article 61 complements this by explaining what a person who has paid the bill may claim from his or her guarantors, namely the whole amount paid and the expenses incurred.
To calculate the amount due precisely in a particular case, it is advisable to consult a lawyer specializing in commercial cases and commercial papers.
Practical example
Adel holds a bill of exchange for SAR 200,000 that was not paid when due, so he made a protest, sent the notices and bore their expenses. Under Article 60, he may claim from the person against whom he has recourse SAR 200,000 plus the expenses of the protest and notices. If his recourse were before maturity because acceptance was refused, an amount equal to the official discount rate on the date of recourse in the place of his domicile would have to be deducted.
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 60 of the Saudi Commercial Papers Law
What may the holder of a bill claim on recourse?
The principal amount of the bill not accepted or not paid, and the expenses of the protest and notices and other expenses.
Is anything deducted if I have recourse before the due date?
Yes, an amount equal to the official discount rate on the date of recourse, in the place where the holder is domiciled, must be deducted from the value of the 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.