Article 10 of the Saudi General Warehouses Law
المادة 10 من نظام الإيداع في المخازن العامة
The article provides that the depositor receives from the general warehouse the storage receipt with a pledge document containing all its details, and the warehouse keeps a true copy of both.
Official text (Arabic)
This article has not been amended since the law was issued.
يتسلم المودع من المخزن العام إيصال التخزين الذي يرافقه مستند رهن يشتمل على جميع البيانات المدونة في إيصال التخزين ، ويحتفظ المخزن العام بصورة مطابقة للأصل من إيصال التخزين ومستند الرهن .
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 10 explained in plain English
This article sets out the documents the depositor receives when depositing his goods in the general warehouse:
- the storage receipt, accompanied by
- a pledge document containing all the details recorded in the storage receipt.
In return, the general warehouse keeps a true copy of the storage receipt and the pledge document.
To understand the value of these two documents, refer to their definitions in Article 2:
- The storage receipt is the deposit contract issued by the general warehouse keeper, stating the depositor's name and address, the type, quantity and value of the goods, the insurance details, and whether the fees and taxes due have been paid.
- The pledge document is a certificate containing clear details of the deposited goods, their value, the rights encumbering them, and other details from the storage receipt.
Having two separate documents has a practical benefit, since Article 2 defines deposit in warehouses as being for the account of the depositor or of whoever acquires ownership or possession of the goods under endorsable documents. As for the warehouse keeping a true copy, it provides a reference when needed.
Article 11 then sets out the rule on fungible goods and their replacement with like goods if the two documents so provide. Article 9 also obliges the warehouse keeper to take out cooperative insurance on the deposited goods.
Practical example
Saad deposited a quantity of rice in a general warehouse in Dammam, and received a storage receipt stating the type, quantity and value of the goods and the insurance details, with a pledge document containing the same details. The warehouse kept a true copy of both documents.
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 10 of the Saudi General Warehouses Law
What documents does the depositor receive from the general warehouse?
He receives the storage receipt, accompanied by a pledge document containing all the details recorded in the storage receipt.
Does the general warehouse keep a copy of the documents?
Yes. The general warehouse keeps a true copy of the storage receipt and the pledge document.
More articles on Storage Receipt and Pledge Document
- Article 2
The article defines the Law's key terms: the general warehouse, deposit in warehouses, the storage receipt and the pledge document.
يقصد بالألفاظ والعبارات الآتية ـ أينما وردت في هذا النظام ـ المعاني المبينة أمامها ما لم يقتض السياق خلاف ذلك : المخزن العام : هو المكان الذي يخصصه الخازن لإيدا
- Article 11
The article allows fungible goods to be replaced with goods of the same nature, type and quality if the storage receipt and pledge document so provide, with the rights passing to the new goods, and the documents to be issued for part of a bulk quantity.
إذا كانت البضاعة المسلم عنها إيصال التخزين ومستند الرهن مثلية جاز أن تستبدل بها بضاعة من طبيعتها ونوعها وصفتها، متى كان منصوصا على ذلك في إيصال التخزين ومستند ا
- Article 12
The article allows the storage receipt and pledge document to be issued in the depositor's name or to his order, allows the endorsement of either or both to others, and requires the endorsement to be recorded with the warehouse keeper immediately.
يجوز أن يصدر إيصال التخزين ومستند الرهن باسم المودع أو لأمره. وإذا كان إيصال التخزين ومستند الرهن لأمر المودع جاز له أن يظهرهما للغير أحدهما أو كليهما. وعلى الم
- Article 19
The article provides that if the goods suffer a defect or damage covered by an insurance policy, the holder of the storage receipt or pledge document has over the insurance amount the rights and privilege he had over the goods.
إذا وقع للبضاعة عيب أو تلف تغطيه وثيقة التأمين، يكون لحامل إيصال التخزين أو مستند الرهن على مبلغ التأمين ما له من حقوق وامتياز على البضاعة.
- Article 20
A person who loses the storage receipt may ask the Board of Grievances for an order to deliver a copy of it, and a person who loses the pledge document may ask for an order to pay the debt that has fallen due, with proof of ownership and a guarantor or sufficient security.
يجوز لحامل إيصال التخزين عند ضياعه أو تلفه أن يطلب من ديوان المظالم إصدار أمر إلى المخزن العام بتسليمه صورة من إيصال التخزين ، على أن يثبت ملكيته لإيصال التخزين
- Article 21
The guarantee provided when a storage receipt or endorsed pledge document is lost expires one year after the Board of Grievances issues the order to deliver a copy of the receipt or to pay the debt that has fallen due.
ينقضي الضمان الذي يقدم في حالة ضياع إيصال التخزين أو مستند الرهن المظهر بانقضاء سنة من تاريخ إصدار ديوان المظالم أمر تسليم صورة إيصال التخزين أو استصدار أمر وفا
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.