Article 21 of the Saudi General Warehouses Law
المادة 21 من نظام الإيداع في المخازن العامة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 وفاء الدين المضمون الحالّ أجله.
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 21 explained in plain English
This article sets how long the guarantee lasts that is provided by a person who has lost one of the documents, the guarantee required by Article 20.
Which guarantee is meant?
Article 20 requires a person whose storage receipt has been lost or damaged, when he asks the Board of Grievances for an order to deliver a copy of it, to prove his ownership and provide a guarantor or sufficient security. It requires the same conditions of a person who has lost the pledge document, when he asks for an order to pay the secured debt that has fallen due.
When does the guarantee expire?
This guarantee expires after one year, counted from the date the Board of Grievances issues:
- the order to deliver a copy of the storage receipt, or
- the order to pay the secured debt that has fallen due.
The article refers to the "endorsed pledge document", meaning the provision concerns a pledge document that has been endorsed.
The purpose of the guarantee is to protect anyone who may later appear as the holder of the original document and claim a right in it, and setting its duration at one year ensures that the person who provided it does not remain bound indefinitely. The article does not state what happens if the holder of the original document appears within the year, nor the procedures for recovering the guarantee.
It is followed by Article 22, which deals with the depositor's failure to recover the goods at the end of the term of the deposit contract. A person who provided a guarantee in this situation and needs to know the procedures for recovering it may consult a lawyer specializing in commercial matters.
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 21 of the Saudi General Warehouses Law
When does the guarantee provided when a storage receipt is lost end?
It expires one year after the date the Board of Grievances issues the order to deliver a copy of the storage receipt.
When does the guarantee end when an endorsed pledge document is lost?
It expires one year after the date the order to pay the secured debt that has fallen due is obtained.
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 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
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.