Article 95 of the Saudi Commercial Papers Law

المادة 95 من نظام الأوراق التجارية · الفصل الأول: إنشاء الشيك

The Article allows a check to be payable to a named person with or without an order clause, to a named person with a not-to-order clause, or to bearer, and sets when a check counts as a bearer check.

Official text (Arabic)

This article has not been amended since the law was issued.

يجوز اشتراط وفاء الشيك إلى:

أ - شخص معين مع النص صراحة على شرط الأمر أو بدونه.

ب - شخص معين مع ذكر شرط (ليس لأمر) أو أية عبارة أخرى تفيد هذا المعنى.

جـ - حامل الشيك .

والشيك المسحوب لمصلحة شخص معين والمنصوص فيه على عبارة (أو لحامله) أو أية عبارة أخرى مماثلة يعتبر شيكا لحامله، فإذا لم يعين اسم المستفيد اعتبر الشيك لحامله. والشيك المشتمل على شرط (غير قابل للتداول) لا يدفع إلا لحامله الذي تسلمه مقترنا بهذا الشرط.

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 95 explained in plain English

This Article determines the beneficiary of a check, meaning the person to whom it must be paid. Payment of a check may be stipulated to:

A named person, with the order clause expressly stated or without it.
A named person, with a "not to order" clause or any other wording to that effect.
The bearer of the check.

The Article then sets rules for interpreting certain forms of wording:

A check drawn in favor of a named person and containing the words "or bearer" or similar words is considered a bearer check.
If the name of the beneficiary is not stated at all, the check is considered a bearer check.
A check containing a "non-negotiable" clause is paid only to its holder who received it with that clause.

This Article is linked to Article 96, which allows a check to be drawn to the order of the drawer himself or for the account of another person.

In practice, leaving the beneficiary's name blank makes the check a bearer check, which should be kept in mind when handing over checks. To know the effect of particular wording written on a particular check, you may consult a lawyer who specializes in commercial matters and commercial papers.

Practical example

Saad wrote a check to his friend and did not fill in the beneficiary's name. Under this Article, this check is considered a bearer check. And if he had written his friend's name and added the words "or bearer", it would likewise be considered a bearer check.

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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