Article 20 of the Saudi General Warehouses Law
المادة 20 من نظام الإيداع في المخازن العامة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 مع تقديم كفيل أو ضمان كاف. ويجوز بالشروط نفسها لمن ضاع أو تلف منه مستند الرهن أن يطلب من ديوان المظالم إصدار أمر بوفاء الدين المضمون إذا كان هذا الدين قد حل أجله. ويجب أن يشتمل الأمر بالوفاء على جميع بيانات التظهير المقيدة في دفاتر المخزن. فإذا لم يقم المدين بتنفيذ الأمر كان لمن صدر لمصلحته هذا الأمر أن يطلب من ديوان المظالم الإذن له في بيع البضاعة المرهونة، ويحدد الديوان طريقة البيع ويبلغ الخازن ومالك إيصال التخزين بذلك، وذلك بشرط أن يكون التظهير مقيدا في دفاتر المخزن، وأن يقدم كفيلا أو ضمانا كافيا.
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 20 explained in plain English
This article deals with the loss or damage of the documents that represent the goods, and distinguishes between two cases:
First: loss or damage of the storage receipt
Its holder may ask the Board of Grievances to issue an order to the general warehouse to deliver to him a copy of the storage receipt, on two conditions:
- He must prove his ownership of the storage receipt.
- He must provide a guarantor or sufficient security.
Second: loss or damage of the pledge document
- A person who has lost the pledge document or whose document has been damaged may, on the same conditions, ask the Board of Grievances to issue an order to pay the secured debt, if the debt has fallen due.
- The payment order must include all the endorsement details recorded in the warehouse's books.
- If the debtor does not comply with the order, the person in whose favor it was issued may ask the Board of Grievances for permission to sell the pledged goods, and the Board determines the method of sale and notifies the warehouse keeper and the owner of the storage receipt. This requires that the endorsement be recorded in the warehouse's books and that he provide a guarantor or sufficient security.
This shows the importance of recording the endorsement in the warehouse's books, since without it the condition for requesting permission to sell in the case of a lost pledge document is not met.
Article 21 then sets the duration of this guarantee, providing that it expires one year after the date the Board of Grievances issues the order to deliver a copy of the receipt or the order to pay the secured debt that has fallen due. A person who has lost one of these two documents is best advised to consult a lawyer specializing in commercial matters to learn what is required in his case.
Practical example
Khalid lost the storage receipt for his goods deposited in a general warehouse in Jeddah. Under this article he may ask the Board of Grievances to issue an order to the warehouse to deliver to him a copy of the receipt, provided he proves his ownership of it and provides a guarantor or sufficient security.
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 20 of the Saudi General Warehouses Law
What do I do if I lose my storage receipt?
Its holder may ask the Board of Grievances to issue an order to the general warehouse to deliver a copy of the receipt, provided he proves his ownership of it and provides a guarantor or sufficient security.
What does a creditor do if he loses the pledge document?
On the same conditions he may ask the Board of Grievances for an order to pay the secured debt if it has fallen due, and the order must include all the endorsement details recorded in the warehouse's books.
What if the debtor does not comply with the payment order?
The person in whose favor the order was issued may ask the Board of Grievances for permission to sell the pledged goods, provided the endorsement is recorded in the warehouse's books and he provides a guarantor or sufficient security.
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 10
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.
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 إي
- 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 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.