Article 67 of the Saudi Commercial Papers Law
المادة 67 من نظام الأوراق التجارية · الفرع الرابع: الامتناع عن الوفاء. أولاً: الاحتجاج
The Article allows the holder of a bill of exchange on which a protest for non-payment has been made to place a precautionary attachment on the movables of any party liable on it, by an order from the authority designated by the Minister of Commerce and Industry.
Official text (Arabic)
This article has not been amended since the law was issued.
يجوز لحامل الكمبيالة المعمول عنها احتجاج عدم الوفاء أن يوقع حجزا تحفظيا على منقولات أي ملتزم بها بعد أن يستصدر أمرا بذلك من الجهة 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 67 explained in plain English
This Article gives the holder of a bill of exchange a means of protecting their right: a precautionary attachment over the movables of any party liable on the bill.
- Who has this right: the holder of a bill of exchange on which a protest for non-payment has been made. The Article ties the right to a protest for non-payment having been made.
- Whose property may be attached: the movables of any party liable on the bill, so it is not limited to one particular obligor.
- How to obtain it: the holder may place the attachment only after obtaining an order to that effect from the authority designated by the Minister of Commerce and Industry. The Article does not name this authority or set out the application procedure, so reference is made to whatever designation is issued.
The Article describes the attachment as precautionary and refers specifically to movables; it does not set out its effects or detailed procedures.
This remedy differs from the bill of recourse (redraft) regulated in Article 66, under which anyone entitled to recourse against other parties liable on the bill may recover their right by drawing a new bill on one of their guarantors, payable at sight at that guarantor's domicile. It is also connected to Article 68, which regulates intervention in the acceptance or payment of a bill for the benefit of a debtor who is exposed to recourse.
To assess whether an attachment is needed and how to apply for it in a particular case, it is advisable to consult a lawyer who specializes in commercial matters and commercial papers.
Practical example
A business in Mecca made a protest for non-payment on an unpaid bill of exchange and feared that one of the endorsers might dispose of his goods and equipment. It may ask the authority designated by the Minister of Commerce and Industry for an order to place a precautionary attachment on that endorser's movables.
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 67 of the Saudi Commercial Papers Law
Can the debtor's assets be attached over an unpaid bill of exchange?
The holder of a bill of exchange on which a protest for non-payment has been made may place a precautionary attachment on the movables of any party liable on it, after obtaining an order to that effect from the authority designated by the Minister of Commerce and Industry.
Must a protest be made before requesting a precautionary attachment?
The Article grants this right to the holder of a bill of exchange on which a protest for non-payment has been made.
Does the precautionary attachment in this Article extend to real estate?
The Article refers to the movables of the party liable on the bill and mentions nothing else.
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.