Article 62 of the Saudi Commercial Papers Law
المادة 62 من نظام الأوراق التجارية · الفرع الرابع: الامتناع عن الوفاء. أولاً: الاحتجاج
Article 62 gives a person who pays a bill on recourse the right to receive it with the protest document and a receipt, and regulates the paying endorser's rights and those of a person who pays the unaccepted portion.
Official text (Arabic)
This article has not been amended since the law was issued.
لكل ملتزم طولب بكمبيالة على وجه الرجوع أو كان مستهدفا للمطالبة بها أن يطلب في حالة قيامه بالوفاء تسلم الكمبيالة مع ورقة الاحتجاج ومخالصة بما وفاه.
ولكل مظهر وفى الكمبيالة أن يشطب تظهيره والتظهيرات اللاحقة له. وفي حالة الرجوع على أحد الملتزمين بالقدر غير المقبول من قيمة الكمبيالة ، يجوز لمن وفى هذا القدر أن يطلب من حاملها إثبات هذا الوفاء على الكمبيالة وتسليمه مخالصة به.
ويجب على الحامل فوق ذلك أن يسلمه صورة من الكمبيالة مصدقا عليها بما يفيد أنها طبق الأصل وأن يسلمه ورقة الاحتجاج تمكينا له من استعمال حقه في الرجوع على غيره بما وفاه.
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 62 explained in plain English
This article deals with what a person who pays the value of a bill is entitled to when recourse is had against him or her, that is, when the holder claims it from him or her as one of those bound on it, or when he or she is exposed to such a claim.
- The right to receive the bill on payment: every obligor who is claimed against on the bill by way of recourse, or is exposed to such a claim, may ask on paying to receive the bill itself with the protest document and a receipt for what he or she paid.
- Striking out endorsements: an endorser who paid the bill may strike out his or her endorsement and the later endorsements.
- Payment of the unaccepted portion: if recourse is had against one of the obligors for the portion of the bill's value that was not accepted, the person who paid that portion may ask the holder to record the payment on the bill and give him or her a receipt for it. The holder must in addition give him or her a copy of the bill certified as a true copy, and the protest document.
The purpose the article states expressly is to enable the payer to exercise the right of recourse against others for what he or she paid. This is linked to Article 61, which allows a person who paid a bill to claim from his or her guarantors the whole amount paid and the expenses incurred; the bill, the protest and the receipt are the documents he or she needs for this claim.
It is also linked to Article 63, which bars granting grace periods for paying bills or for taking any procedure relating to them except in the cases provided for in the law.
If a dispute arises over payment or recourse, it is best to consult a lawyer specializing in commercial cases and commercial papers.
Practical example
A company in Jeddah endorsed a bill of exchange to a supplier in Riyadh, and the bill was not paid on its due date, so the supplier made a protest and had recourse against the company as endorser. When the company pays, it may ask to receive the bill, the protest document and a receipt for what it paid, and to strike out its endorsement and the endorsements after it, and then use these documents to have recourse against others for what it paid.
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 62 of the Saudi Commercial Papers Law
Am I entitled to receive the bill after paying its value to the holder?
Yes, every obligor claimed against on the bill by way of recourse, or exposed to such a claim, may ask on paying to receive the bill with the protest document and a receipt for what he or she paid.
What does an endorser do after paying the value of the bill?
He or she may strike out his or her endorsement and the later endorsements; the purpose of receiving the bill and the protest is to enable him or her to have recourse against others for what he or she paid.
What if I paid only the unaccepted portion of the bill's value?
You may ask the holder to record the payment on the bill and give you a receipt, and the holder must give you a certified true copy of the bill and the protest document.
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.