Royal Decree No.

(M/37) Dated 11/10/1383H (corresponding to 25/2/1964)

WITH THE HELP OF ALMIGHTY ALLAH,
WE, SAUD BIN ABDULAZIZ AL-SAUD, THE KING OF THE KINGDOM
OF SAUDI ARABIA,
After reviewing the articles (19) and (20) of the Law of the Council of Ministers of
Saudi Arabia issued by the Royal Decree No. (38) dated 22/10/1377H
(corresponding to 12/5/1958),
After reviewing the Resolution No. (692) dated 26/9/1383H (corresponding to
10/2/1964) issued by the Council of Ministers,
And upon the proposition of the Prime Minister,
DO HEREBY DECREE THE FOLLOWING:

First: The approval of the Law of Commercial Papers with the attached form.
Second: The Prime Minister as well as the Minister of Commerce and Industry
shall bring this Decree into force.

Royal Signature

Royal Decree No. (M/45) Dated 12/9/1409H (corresponding to 19/4/1989)

WITH THE HELP OF ALMIGHTY ALLAH,
WE, FAHD BIN ABDULAZIZ AL-SAUD, THE KING OF THE KINGDOM
OF SAUDI ARABIA,
After reviewing the articles (19) and (20) of the Law of the Council of Ministers of
Saudi Arabia issued by the Royal Decree No. (38) dated 22/10/1377H
(corresponding to 12/5/1958),
After reviewing the Law of Commercial Papers issued by the Royal Decree No.
(37) dated 11/10/1383H (corresponding to 25/2/1964),
After reviewing the Resolution No. (155) dated 27/8/1409H (corresponding to
4/4/1989) issued by the Council of Ministers,
DO HEREBY DECREE THE FOLLOWING:

First: the text of the articles (118, 119, and 120) of the Law of Commercial Papers
issued by the Royal Decree No. (37) dated 11/10/1383H (corresponding to
25/2/1964) shall be changed into:

Article 118: Without prejudice to any severer penalty provided in any other laws,
an imprisonment sentence of a term not exceeding 3 years and with a fine not
exceeding SR 50 thousand or either of these two penalties shall be served by a
person who, in bad intention, commits one of the following acts:
a) If he issues a retractable check which has no current cashable payment
considerationorwhen it has a consideration but its value is less than the
amount mentioned in the check.
f he regains, after issuing the check, all or some of the consideration in such a
way that the remaining amount is not sufficient for the check value.
b) If he tells the drawee not to cash the check.
c) If he deliberately writes the check or sings it in such a way that prevents it
from being cashed.
d) If he endorses or signs for a third party a payable check, despite knowing that
it has not consideration sufficient for the check value or it is not cashable.
e) If the beneficiary or the bearer receives a check that has no cashable payment
consideration sufficient for paying its value.
If the perpetrator repeats any of the crimes within 3 years as from the date of
sentencing him in any of them, the punishment shall be imprisonment for a
term not exceeding 5 year and a fine not exceeding SR 100 thousand or
either of these two penalties.
.
Article 119: without prejudice to any severer penalty provided in any other laws, a
fine sentence of not more than SR 100 thousand shall be paid by a drawee who, in
bad intention, refuses to cash a properly-withdrawn check that has cashable payment
consideration and has not been challenged; given that, the drawer shall be
compensated for the damage resulting from dishonor.
Such sentences shall be served by a drawee declaring the possession of cashable
payment consideration, despite knowing that he has a less amount.

Article 120: without prejudice to any severer penalty provided in any other laws, a
fine sentence of not more than SR 10 thousand shall be paid by:
a) A person who issues a check without filling in the date field or writes an
incorrect date.
b) A person who issues a check to be cashed from a place other than the bank.
c) A person who pays a check without filling in the date field, as well as the
person who receives a check on a basis of mutual consent and compensation.

Second: the following Article shall be added to the Law of Commercial Papers:
Article 121: the names of the condemned persons, upon the provisions of this Law,
may be judged to be published. The judgment shall determine the way of
implementing this matter.
Third: the Deputy Prime Minister as well as the ministers, each within the scope of
his jurisdiction, shall bring this Decree into force.
Royal Signature

Ministerial decision No. 859, dated 13/3/1403h, on procedures of settling the
Commercial Papers disputes

Having reviewed the commercial court law, issued by the royal order No. 32, dated
15/1/1350h, and the commercial papers law issued by the royal decree No. 37, dated
11/10/1383, and the ministerial decisions No. 353 and No. 354 dated 11/5/1383h,
and No. 358 dated 16/5/1388 forming the commercial papers committees to
consider the issues resulting from applying the provisions of Commercial papers Law
in Riyadh, Jeddah, and Dammam; and the ministerial decision 2093 dated
18/6/1401 on the procedures of commercial papers committees, and in line with the
public interest requirements. The Minister of Commerce, within the domain of his
powers, decides the following:

Article 1: while there is no a law as far as this decision is concerned, the body
concerned with settling the commercial papers disputes within its purview applies
the provisions provided on the fifth chapter up to ninth chapter, as well as the
twelfth chapter of the third part of the Commercial Court Law. It is to settle the
lawsuits considered before it as soon as possible.

Article 2: the dispute is considered attended as far as the defendant is concerned, if
they were notified in person with the date of the session, or notifying whoever
deputizes them or working for them; or to be any of those who live along in terms
of spouses, relatives, and in-laws. As for companies and institutions, the dispute is
considered attended if the date of the session was notified in the work place to any
of those working for the company and institution. Also, the dispute is considered
attended if the defendant attended any session of dispute examination sessions or
submitted a defense memo even if they failed to appear later.

Article 3: the decisions issued by the bodies referred toare associated with the quick
self-executing without bail, and they must demonstrate that in their decisions; and
opposing or complaining do not lead to suspending the implementation of their
decisions. It is allowed for the Minister of Commerce or whoever is commissioned
according to the request of the concerned person, and after presenting a bank
guarantee or an approved check to temporarily order the suspension of the quick
self-executing until the opposition or grievance is settled according to
circumstances.

Article 4: the prosecutor-general must include the owner of the institution, the
director of the company, or whoever represent them with the owner of the check as
far as the public right cases are concerned.

Article 5: while the case is being considered, it is allowed for the beneficiary to
demand from the bodies referred to conducting the preventive attachment on the
creditor's property, whether they have it or not, after presenting bank guarantee or
approved check, or a bail from a rich person.

Article 6: the concerned person has the right to submit grievance against the
decisions issued in the commercial papers disputes before the Minister of Commerce
by virtue of a regulation with which the corroborative documents are enclosed. This
to take place within thirty days of the date of notifying them with the decision

Article 7: the concerned person has the right to object to the decisions made in
absentia before the body which issued the decision within 15 days of the date of
notifying them with the copy of the decision. They also have the right to submit a
grievance against the decision before the Minister of Commerce within thirty days
following the date of objection period ending in the event they have not submitted
it on time.

Article 8: the decision No. 2093 is rescinded and the date 18/6/1401 referred to.

Article 9: the commercial papers cases are considered before the body determined
by the Minister of Commerce.

Article 10: this decision is published on the official newspaper, and it is in force as
of its publication.
Minister of Commerce
Ministerial decision No. 546, dated 13/5/1413, modifying some provisions
of the decision of the Ministry of Commerce No. 859, dated 13/3/1403h.

Having reviewed the commercial court law issued by the royal order No. 32, on
15/1/1250h, the Commercial Papers Law issued by the royal decree No. 27, on
11/10/1283, the ministerial decision No. 918, on 25/ 3/1402, involving forming the
Legal Committee of the Ministry of Commerce in Riyadh and determining its
specialties, and the ministerial decision No. 859, on 13/3/1403, on the procedures of
settling the commercial papers disputes, and in line with the public interest
requirements, the Minister of Commerce, within the scope of his powers, decides
the following:

Article 1: the phrasing of article 2 of the ministerial decision No. 859, on
13/3/1403h shall be replaced by the following:
The dispute shall be considered attended under the following circumstances :

A. If the defendant were notified in person with the date of the session or if
whoever deputize them, work for them, or any of those living along in terms
of spouses, relatives, and in-laws. As for companies and institutions, the
dispute shall be considered attended if the date of the session was notified at
the work place to any of those working for the company or the institution.

B. If the Legal Committee found that there is no way to make notification
according to the aforementioned procedures, and preferred to make
notification through publishing a summary of the paper intended notified on
a daily newspaper, distributed in the last domicile known for the
defendant.And the summary of the paper must include the name of the
plaintiff and the defendant, the topic of the dispute, and the body to consider
it, and the place and date of the session.

C. If the defendant attended any session of case examination sessions or submit a
defense memo, even if they failed to appear later.
Article 2: this decision shall be published on the official newspaper and it shall take
effect as of its publication.

May Allah guide us
Minister of Commerce

Ministerial decision No. 154, dated 6/1/1431, on modifying the two articles
No. (6,3) of the ministerial decision No. 859, dated 12/3/1403, and the article
No. (5) Of the ministerial decision No. 918, dated 25/3/1403h.

Having reviewed the Commercial Court Law issued by the royal decree No. 32,
dated 15/1/1350, and the Commercial Papers Law issued by the royal decree No.
37, dated 11/10/1383h, and the two ministerial decisions No. 918, dated 25/3/1403,;
and No. 118, dated 16/8/1406, and the ministerial decisions related to forming the
offices of commercial papers disputes in the Kingdom, and the Legal Committee
and determining its purviews, and the two ministerial decisions No. 859, dated
13/3/1403; and No. 546 dated 13/5/1413, on the procedures of settling the
commercial papers disputes, and what was submitted by His Excellency the Assistant
Minister for Legal Affairs on the memorandum No. , dated 11/1/1431hand
according to the public interest requirements, the Minister of Commerce and
Industry, within the scope of his powers, decides the following:

First Article:
Article No. (3) of the Ministerial decision No. 859, dated 13/3/1403 is amended to
the effect that its phrasing become as following : the decisions issued by the bodies
referred to are made for with the expeditious execution without a bail. And they
are to demonstrate that in terms of its decisions, and any objection or grievance does
not lead to suspending the execution of their decisions. It is allowed for the Legal
Committee, according to the demand of the concerned person, and after presenting
bank guarantee or approved check, to temporarily order to suspend the expeditious
execution until the objection or the grievance is settled according to circumstances.

Second Article
Article (6) of the ministerial decision No 859 dated 13/3/1403 is amended to the
effect that its phrasing is rendered as following:

1) Grievance or objection is conducted through a request submitted to the Legal
Committee or to the department of the branch related to the office from the
which the decision was issued by virtue of a memorandum including the
statement of the decision objected to or complained of, its number, its date,
and the reasons upon which the objection or the complaint was based, the
demand of the person submitted the objection or the complaint, their
signature, and the date of submitting the memorandum.

2) The department of the branch registers the objection or the complaint on the
day when submitted on the general coming records, and it is added to the
case dossier. Then, it is forwarded to the Assistant Ministry Agency for Legal
Affairs in Riyadh to be referred to the Legal Committee.

Third Article:
Article (5) of the ministerial decision No. 918 dated 25/3/1403 is amended to the
effect that its phrasing becomes as following:
Complaining or objecting of the decisions of commercial papers disputes settlement
offices is conducted in the Kingdom before the Legal Committee in Riyadh. It is
concerned with settling the complaints and objections submitted against the
decisions of commercial papers disputes settlement offices. Its decisions shall be final
and strict.

Fourth Article:
The complaint or the objection is submitted by the name of the head and members
of the Legal Committee in Riyadh within thirty days of the date of notifying them
with a copy of the decision. It is to include the reasons and justifications upon which
the complaint or the objection is based with the following enclosed:
1) A copy of the decision of which the complaint is based.
2) A copy of the national card for Saudis and the residence card for non-Saudis.
3) If the complaint or the objection were submitted by an agent or a lawyer, the
copy of the power of attorney issued by the notary-public, which empowers
them therewith, is enclosed.

Fifth Article:
This decision is published on the official newspaper and takes effect as of the date of
its issuance.
Minister of Commerce and Industry
Abdullah bin Ahmed Zainal Alireza


Commercial Papers Law

First Part

First Chapter
Creating a bill

Article (1): the bill includes the following data:
A. The word (bill) is written on the body of the instrument and in the language
in which it was written.
B. Unconditional order to pay back a specific sum of money.
C. Name of the person to pay back (drawee).
D. Due time
E. Place of payment.
F. Name of the one to be paid for.
G. Date and place of creating the bill.
H. Signature of the person who created the bill (the drawer).

Article (2): the check short of the data on the aforementioned article is not
considered a bill, except in the following circumstances:
A. If the bill were short of the due time datum, it shall be paid when viewed.
B. If it were short of the payment place datum or the drawee's domicile datum,
the place written beside the name of the drawee shall be considered the place
of its payment and the domicile of the drawee.
C. If it were short of its creation place datum, it shall be considered created in the
place of the name written beside the name of the drawer.

Article (3): it is allowed to draw the bill for the order of the drawer themselves. It
can be drawn to its drawer's account, and it can be drawn to another person's
account.

Article (4): it is allowed to condition paying back the bill in another person's
domicile rather than the drawee, whether this person was in the place where the
drawee's places or in another place.

Article (5): if the sum of the bill were written in both letters and numbers, then
when incompatible, the sum written in letters has the upper hand. And if the sum
was written in letters and numbers several times, then when incompatible, the least
sum of all is approved.

Article (6): the bill interest condition is considered none.

Article (7): the liability of the person to pay the bill is determined in line with the
law of their country, in spite of that, the Saudi citizen is not considered liable to pay
the bill only if they reached 18.

If the person was minor according to the laws of their country, then his liability
remains valid if their signature was put in a country whose laws consider them liable.

Article (8): the minors' commitments who are not traders and the commitments of
the irresponsible resulting from their signing a bill are rendered null and void, and
they are allowed to adhere to that annulment in face of whoever holds the bill even
if they were well-intentioned.

Article (9): If the bill bore the signatures of persons not liable to them, or forged
signatures, or signatures of unreal persons, or signatures not binding for any other
reason the persons who signed the bill, or which was signed by their names, the
commitments of others who signed it remain valid though.

Article (10): whoever signed a bill on behalf of another without having a power of
attorney, they shall be personally committed by virtue of the bill. If they paid the
bill, the rights which devolved to whoever claimed to be his agent devolved to
them. This ruling takes effect to whoever violated the limits of representation.

Article (11): the person to whom the bill shall be paid guarantees its approval and
payment and it is allowed to condition their exemption from the approval
guaranteewithout payment guarantee.

Second chapter
Circulating the bill by endorsement

Article (12): it is allowed to have the bill circulated by endorsement even if it is not
stated explicitly that it is drawn for an order. And it is not allowed to circulate the
bill which the person to whom the bill is paid puts not for an order phrase and any
equivalent phrase only according the provisions of the assignment.

It is allowed to endorse for the drawee whether they approved the bill or not. Also,
it is allowed to endorse to the person the bill to be paid or any other binding party.
It is allowed to re-endorse the bill for them all.

Article (13): the endorsement must be free of every condition and every condition
associated with the endorsement shall be considered none. The partial endorsement
is null and void and endorsement for the bill holder paid is a blank endorsement.

Article (14): the endorsement is written on the bill itself or on any other attached to
it and it is endorsed by the endorser. Also, it is allowed not to write the name of the
endorser when endorsing the bill. And if the bill as blankly endorsed, it is allowed
for the bill holder to write their name or the name of another person or to blankly
re-endorse the bill or to another person. Or the bill is to be delivered to another
person without filling the blank space or without endorsing the bill.

Article (15): the endorser guarantees the approval of the bill and its consideration
unless they condition otherwise. The endorser is allowed to restrict its re-
endorsement. Thereby, the endorser is not bound with a guarantee to whom the bill
shall be paid with a later endorsement.


Article (16): the person holding the bill is its legitimate holder whenever that
person proves to be its true owner for unbroken endorsement even if its last
endorsement was in blank. And crossed endorsements in this regard are considered
none. And if the blank endorsement is followed by another endorsement the person
who signed this last endorsement is considered the person to whom the right of the
bill is devolved by endorsing in blank. And if the person lost the bill as a result of an
accident, then its holder is not bound to waive it whenever it is proven to be their
true owner according to the aforementioned provisions unless that person ill-
intentioned got the bill or in order to get the bill that person has committed a grave
mistake.

Article (17): endorsement transfers all the rights resulting from the bill and the
person against which the bill case has been filed do not have the right to protest
against its holder on the motives based upon their relationship with its payee or its
previous holders unless the intention of its holder at the time of having it was to
cause harm to the creditor.

Article (18): if the endorsement includes the phrase of "value receivable" or "value
payable" or "by proxy"" or any other similar phrase that denotes proxy, herewith the
holder exercise the rights resulting from the bill but that person is not allowed to
endorse the bill only by proxy. Thereby, the binding parties shall not object to the
holder of the bill only on the claims which are allowed to be made as objection
reasons to the endorser. And the proxy resulting from the proxy endorsement shall
not be rendered null and void by the demise of the client or anything renders them
not liable.

Article (19): if the endorsement includes the phrase of "collateral value" or
"mortgage value" or any similar phrase denoting mortgage, then the holder of the bill
is allowed to exercise all the rights resulting from the bill. If the holder of the bill
endorsed it, the endorsement is considered by proxy. And the debtor of the bill does
not have the right to protest against the holder on the claims based upon their
personal relationship with the endorser only if the holder of the bill at the time of
getting it had intentions to cause harm to the debtor.
Article (20): the endorsement which goes with the payment date clears the impacts
of the endorsement which precedes it, as for the endorsement which goes with the
non-payment protest or which takes place past the date determined for submitting
this protest clears the impacts of the assignment. And the endorsement which is
dateless is considered done before the date determined for submitting the protest
unless it is proven otherwise. And it is not allowed to put forward the endorsement
date and if occurred, this would be considered forgery.

Third Chapter

Acceptance of the Bill

Article (21): it is allowed for the holder of the bill or any holder, till the date of
payment, to submit such a bill to the drawee in his domicile to have it accepted.
It is allowed for the drawer of the bill to guarantee it on the condition of submitting
it for acceptance at a specific time or without determining timeand the drawer of the
bill has the right to guarantee it on the condition of not submitting it for acceptance;
unless it is due to be paid after a specific period of viewing it. The holder of the bill
has the right to condition not to submit it for acceptance before a specific term. And
every endorser has the right to condition tosubmit it for acceptance at a specific time
or without determining time unless the drawer has conditioned not to submit it for
acceptance.

Article (22): the bill due to be paid after a specific time of its viewing shall be
submitted for acceptance during a year of its date and the drawer has the right to
have such time shortened or prolonged and everyendorser has the right to have such
time shortened.

Article (23): it is allowed for the drawee to demand submitting the bill for
acceptance again on the second day of the first submission.
And it is not accepted of the concerned parties to claim that such a demand has been
declined unless such a demand has been proven on the paper of protest, and the
holder of the bill submitted foracceptance is not bound to waive it and deliver it to
the drawee.

Article (24): the acceptance is written on the bill itself and it is couched by the
phrase "accepted" or any other phrase denoting such a meaning, and it is signed by
the drawee. And it is considered acceptance once the drawee put their signature on
the front part of bill. And if the bill is due to paid after a specific period of its
viewingorit is to be submitted for acceptance at a specific period according to special
condition, the date of acceptance shall be written on the day when it has taken place
only if the holder of the bill has written the date of acceptance on the day of
submitting the bill. Hence, if the acceptance has proven dateless, it is allowed for the
holder of the bill, in order to protect their rights, toreturn to the endorsers, or the
drawer shall have to prove that the acceptance is dateless through filing a protest in
the proper time.

Article (25): the acceptance shall be unconditional, and it is allowed for the drawee
to restrict it to only a part of the bill sum though. If the acceptance phrasing includes
amending to any other item of the items of the bill, this is considered a decline for
the acceptance, and the acceptor is still bound to all whatthe acceptance phrasing
includes though.

Article (26): if the drawee crosses their acceptance written on the bill before
returning itthis is considered a decline for the acceptance. And the crossing is
considered done before returning the bill unless it is proven otherwise. Nonetheless,
if the drawee has notified or whoever has signed the bill in black and white with
their acceptance, they shall be bound towards them with that acceptance.

Article (27): if the drawer of the bill has designated a place for payment rather than
the drawee's domicile without designating the person who witnesses the payment,
then the drawee is allowed to designate them when accepting. If the drawee has not
designated that person, the acceptor is considered bound to pay in the payment
place. And if the bill is due to be paid in the drawee's domicile, it is allowed to
designate, in the acceptance phrasing, the address of the place where the payment is
to take place.

Article (28): if the drawee has accepted the bill, they render bound to pay its value
on the date of its payment. And if the drawee declined paying the bill, then the
holder, and even if it was the drawer themselves, has the right to file a direct case
against the acceptor as a result of the bill with all the claims allowed by virtue of
articles 60 and 61.

Fourth Chapter
Concurrent Consideration

Article (29): the drawer of the bill or whoever has drawn the bill for their account t
makes sure that the drawee shall have its concurrent consideration. But this does not
exempt the person who draws for other's account from their personal responsibility
before their endorser or their holders.

Article (30): the concurrent consideration is considered existed if the drawee owes
to the drawer or for the person who has ordered the drawing at the date of the bill
payment with a specific sum due to be paid and equal at least for the sum of the bill.
And the bill acceptance is considered as evidence that the drawee has the concurrent
consideration only if it is proven otherwise, and only the drawer shall prove in case
of denial whether the bill acceptance has taken place of not that the drawee has had
its concurrent consideration at the date of payment; if he has not proven that the
drawee has rendered guarantor for the concurrent consideration, even if they have
filed the protest past the date legally determined. But in the last case if it is proven
the existence of the concurrent consideration and the continuation of its existence
until the date determined for filing the protest has ended, this shall clear them as
much as the amount of such concurrent consideration unless it has been used for
their own interest.

Article (31): the ownership of the concurrent consideration transfers in line with
the law to the subsequent holders of the bill. And if the concurrent consideration is
less than the bill value,then the holder of such concurrent consideration has all the
rights set for them in tandem with the full concurrent consideration. .

Article (32): if several due-paid bills coincided to be due on the same dateagainst a
concurrent consideration not as much as its value pay them all, it shall be taken into
consideration the order of their drawing dates as far as the rights of their holders are
concerned in terms of meeting their rights with regard to the stated concurrent
consideration, and the bill holder whose bill is dated earlier than the other bill
holdershas the priority to be paid first. And if the bills were drawn on the same date,
then the bill bearing the drawee's acceptance is prioritized. And if any bill did not
bear the drawee's acceptance, then the bill to which the concurrent consideration is
assignedis prioritized. As for the bills including the non-acceptance condition comes
last.


Article 33: the drawer, even if they filed the protest past the date legally determined,
shall deliver the bill holder the necessary documents in order to get the concurrent
consideration. Then, if the drawer went broke; this is to be devolved legally to the
person guarantees them, and all the fees involved shall be the responsibility of the
bill holder under any circumstances.

Article (34): if the drawer went broke, even before the bill payment date, so its
holder rather than others of the drawer's debtors to demand their right from the
concurrent consideration which properly exists at the drawee. And if the drawee
went broke, and the concurrent considerationwas among their debts, such a debt
comes under the bankruptcy assets. But if the concurrent consideration was
materialistic allowed to be restored according to the bankruptcy provisions, then the
bill holder has the priority to demand their right from the value of the concurrent
consideration.




Fifth chapter
Collateral

Article (35): it is allowed to pay the sum of the bill, all of it or some of it, from the
collateral; and this collateral is taken from any person even from those who have
signed the bill.

Article (36): the collateral is written on the bill itself or on the paper attached to it.
And it is phrased "accepted as a collateral" or any other phrase rendering the same
meaning. And it is signed by the guarantor, and it is stated on the collateral paper the
name of the guarantee otherwise the collateral is considered in favor of the
drawer.And this guarantee takes effect once the guarantor puts their signature on the
front part of the bill, unless this signature was made by the drawee or the drawer.
Nonetheless, it is allowed to have the collateral written on a self-contained paper on
which the place wherethe guaranteehas taken place is shown. And in this case, the
collateral is bound to the person for whom the guarantee is made.

Article (37): the guarantor is bound as much as the guarantee and the commitment
of the guarantor are valid even if what they guaranteed was null and void for any
reason unlike outward features. And if the guarantor paid the bill, all the rights
resulting from it shall devolve to them; this is towards the guarantee and towards
every binding party towards the latter by the virtue of the bill.

Sixth Chapter
Payment of the Bill

First Branch- Payment Period

Article (38): it is allowed that the due-paid bill is drawn when submitted or after
specific period of submission, or after a specific period of the date of creating the bill;
or on a specific date. And it is not allowed that the bill includes other due dates or
subsequent due dates otherwise it shall be null and void.

Article (39): the due-paid bill when examined shall be due to be paid once it is
submitted, and it must be submitted for payment within a year of its date. And the
drawer has the right to shorten this date or prolong it, and for the endorsers have the
right to shorten it. And the drawer has the right to condition that the due-paid bill
not be submitted when examined before a specific term has passed, and in this case
the date of submission is calculated starting of this term.

Article (40): the date of the due-paid bill starts after a period of the examination of
its acceptance date or the protest date. If the protest is not filed, the dateless
acceptance is considered one, as far as the acceptor is concerned, on the last day set
for submitting the bill according to article 22.

Article 41: the bill drawn for a month or more of its date or the date of its
examination is due to be paid on this date of the monthin which it shall be paid. If
there is not equivalent for that date in the month in which the payment shall take
place, the payment shall take place on the last day of the month. If the bill was
drawn for a month and a half or for months and a half of its date, or of the date of its
examination, the starting of payment shall be by the full months.

Article (42): If the bill is due to be paid on a specific day and in a country whose
calendar differs from the calendar of the country which issued it, the date of
payment shall be determined according to the calendar of the country to pay the
bill. And if the bill was drawn between two countries whose calendars are different
and it shall be due to be paid after a period of its date, then the date of its issuance
shall be brought back to the day equivalent in the calendar of the country where the
bill is to be paid, and the time of payment is determined according to that. And the
time of the bill submission is calculated according to the aforementioned provisions.

Second Branch
Means of Payment

Article (43): the holder of the bill is to submit it for payment on the day when it is
due to be paidandthe bill submission to the clearing houses, legally recognized, is
considered as a payment submission.

Article (44): if the drawee paid the bill, they are allowed to demand to have the bill
delivered by the holder of the bill with the quittance signature. And the holder is
not allowed to abstain from the partial fulfillment and if the payment was partial, the
drawee is allowed to demand proving such fulfillment on the bill itself and have a
quittance given to them, and all what is paid of the actual value of the bill that
disowns its owner and its endorsers., and other binding parties. And the holder of
the bill has the right to file a protest against the unpaid amount of its value.

Article (45): the holder of the bill is not forced to have its value paid before the due
date. And if the drawee paid the value of the bill before the due date, they shall bear
the results of doing so. And whoever pays the bill on the due date without a proper
protest, they shall be disowned unless they committed cheat or a grave mistake. And
they shall ensure of the regularity of the endorsement sequence but they are not
bound to verify of the validity of the endorsers' signatures.

Article (46): if it is conditioned that the bill be paid in cash uncirculated in the
Kingdom, the payment shall take place in the cash circulated in it according to its
price on the honor day. And if the debtorfell behind paying on the stated day, the
holder of the bill shall have the choice between demanding the sum of the bill in the
cash circulated in the Kingdom according to its price on the honor day abide by the
applied rules in the Kingdom in terms of foreign exchange circulation. Nonetheless,
it is allowed for the drawer to show on the bill the price upon which the sum to be
paid is calculated. And if the sum of the bill assigned in cash bearing the same name
of currency but its value differs in the issuance countryfrom its value in the honor
country; this means that bill is to be paid in the cash of the honor country

Article (47): if the bill was not submitted for payment on the honor day, it is
allowed for each debtor to deposit its value in the body designated by the Minister
of Commerce and Industry; and the deposit shall be at the expense of the holder and
in their charge. And the stated body delivers the depositor a document on which it
is stated that the sum has been deposited, its value, the date of the bill, the date of
honor, and the name for whom the bill was issued.Then, if the holder of the bill
demanded the debtor with payment, the debtor shall deliver the deposit document
in return for bill-delivering. And the holder of the bill has the right to be cashed the
sum from the body referred to by virtue of this document. And if the debtor did not
deliver the deposit document, they shall pay the value of the bill.

Third Branch
Protest of Payment

Article (48): it is not allowed to protest with regard to the bill payment only in the
case of its phrasing, or that its holder has gone broke, or something takes place
rendering them not liable.

Article (49): if the unaccepted bill got lost and it was created of several copies, it is
allowed for whom it is to be paid to demand its payment by virtue of one of its
other copies. And if the bill was created of several copies and the copy bearing the
acceptance phrasing, it is not allowed to demand its payment by virtue of one of its
other copies only upon the order of the body designated by the Minister of
Commerce and Industry, and on the condition that surety be provided.

Article (50): it is allowed for whoever lost the bill whether accepted or not and
were not able to submit one of its other issues to have an order for its payment
issued for them by the bodies designated by the Minister of Commerce and
industry, on the condition that they prove their ownership and provide a surety.

Article (51): in the event of preventing from paying the lost bill after submitting a
claim with it according to the aforementioned provisions, in order for its owner to
maintain their rights they shall prove that on a protest paper, issued on the next day
of the honor date. And it is to be notified to the binding parties of the bill in person
and on the specific dates. The protest paper shall be issued and have it notified even
if the order issuance of the designated body did not take place in the proper time.
Article (52): the holder of the bill is allowed to get a copy of it, and this is to take
place through the person who endorsed the bill for them; and this endorser shall be
committed to cooperating with them and permitting them to use their name in
claiming the previous endorser. And the holder of the bill goes after such claiming
from an endorser to another till they get to the drawer. And every endorser is
committed to writing their endorsement on the copy of the bill delivered by the
drawer after writing what shows that it is a replacement. And it is not allowed to
claim payment by virtue of this copy only by order of the designated body assigned
by the Minister of Commerce and Industry on the condition that a surety is
provided, and all the fees are to paid by the holder of the lost bill.


Article (53): paying in the honor date according to the order of the designated body
referred to in the previous articles clears the debtor. And the surety is cleared
according to the articles 49, 50.52: of three years passed and during which neither a
claim nor a case was filed before the designated body which is assigned by the
Minister of Commerce and Industry.

Fourth Branch
Payment abstention:

First Protest:
Article (54): the holder of the bill shall prove abstention from its acceptance or its
payment on an official paper called "Non-acceptance Protest" or "Non-payment
Protest". And any other procedure does not dispense with this protest, and the
protest paper is issued by the body which is assigned by the Minister of Commerce
and Industry.

The protest paper shall include a copy of the bill and all what is included in terms of
acceptance, endorsement, and collateral; and other items, bill value payment notice,
and the attendance or the absence of the person committed to acceptance or
payment is mentioned on it.
And the foregoing body shall leave a copy of the protest paper for all it was issued
against. And such a body shall keep a record of all the protest papers day after day
with paying attention to ordering dates on a special record with pages numbered and
approved in line the original copies. And registration in the said record is conducted
in the way adopted on the catalog records.

During the first ten days of every month, the said body shall send to the commercial
registry office a list of non-payment protests which were issued during the previous
month of the accepted bills; and the commercial registry office keeps record of these
protests. And it is allowed for everyoneto view them or takes out a version identical
to them in return for the fees set, and the office is to make a report with these
protests included.

Article (55): non-acceptance protest shall be conducted on the dates determined for
submitting the bill for acceptance. So, if the first submission for acceptance took
place, according to article 23, on the last day of the date determined for submission,
it is allowed to file the protest on the following day.

The non-payment protest for the bill due-to be-paid on a specific day, or after a
period of its date, or the date of its viewing shall be filed on the two working days
following its honor day. And of the bill is due-paid when viewing, the non-
payment protest shall be filed according to the terms shown on the previous
paragraph with regard to non-payment protest. .And non-acceptance protest is
adequate to not submitting the bill for payment and filing the non-payment protest.

And if the drawee refrained from payment whether they were acceptor of the bill or
not, and in the event of making futile confiscation of their money, it is not allowed
for the bill holder to turn for their guarantors only after submitting the bill to the
drawee to pay it, and after filing the non-acceptance protest. And in the event that
the drawee went bankrupt, whether acceptor of the bill or not, and in the event that
the issuer of the bill conditioned to be submitted for acceptance went bankrupt,
then submitting the bankruptcy ruling proves adequate onto itself to enable the
holder of the bill from assuming their rights in terms of turning to the guarantors.
Article (56): the holder of the bill shall notify the issuer of the bill who endorsed it
that it is not accepted or it is not paid within four working days following the day on
which the protest has been filed or the bill has not been submitted for acceptance or
payment if it has included the term of recourse without fees or without protest.

And every endorser within the two working days following the day on which they
were delivered the notice shall notify the endorsee that they have been delivered
such a notice showing the names and addresses who sent the previous notices, and
so forth from an endorser to another down to the drawer. And the time as far as
every endorser is concerned starts of the date on which the notices were delivered.

Article (57): the drawer or any substitute endorser is allowed to exempt the holder
of the bill from filing non-acceptance or non-payment protest when assuming their
right in terms of recourse if they guarantee the bill and added to their signature the
term of recourse without fees, or without protest, or any other phrase bearing such a
meaning.
And this term does not exempt the holder of the bill from submitting the bill in the
set dates and nor serving the necessary notices. And whoever sticks not to, before
the holder, taking into consideration prove that.
And if the drawer wrote this term, its consequences shall take effect on all the
signees of the bill. But if one of the endorsers or one of the substitute guarantors
wrote it, its consequences take effect on them alone.
And if the drawer was the one who set the term and the holder of the bill filed a
protest though, they shall bear the fees alone. But if the term was issued by a
substitute endorser or guarantor, then it is allowed to assume recourse to all the
signees in terms of protest fees if case of filing it.

Second: Rights of the Holder
Right of Recourse:

Article (58): the drawer of the bill, its acceptor, its endorser, and its substitute
guarantor are all responsible in solidarity towards its holder; and the holder has the
right to claim them individually or combined without taking the order into
consideration. And this right is proven to each signee of the bill paid its value
towards liable to them. And the lawsuit filed against one of the binding parties does
not prevent claiming others, even if their binding was consequential for whom the
lawsuit was initially filed.

Article (59): the holder of the bill, if it is not paid in the maturity date, has the right
to have recourse to its issuer, its endorsers, and others who liable to it.
And they have the right of recourse before the maturity date under the following
circumstances:
First: in case of total or partial refraining from acceptance.
Second : in case that the drawee went bankrupt whether they accepted the bill
or not; and in case that they stopped what they owe, even if stopping is not proven
by a ruling; and in case of making a futile confiscation of their money.
Thirdly: in case that the drawer of the bill conditioned not to be submitted for
acceptance went bankrupt. And it is allowed for the guarantors when referring to
them in the cases shown on the second and third items to demand from the body
which is assigned by the Minister of Commerce and Industry a payment grace
during three days of the date of referring to it. Si, if the said body saw a reason for
the claim. It shall determine in its order the date on which the payment is to take
place, on the condition that the granted grace does not go beyond the date set for
the bill maturity, and grievance is this regard is not accepted.

Article (60): the holder of the bill has the right to claim the party to whom they
have the right of reference with the following:
A. The actual sum of the unaccepted of unpaid bill.
B. Protest and notice fees and other fees.
With regard to circumstances of reference before the maturity date of the bill, the
holder of the bill shall waive part of its value as much as the official deduction price
on the reference date, in the place where the holder's domicile is located.
Article 61: it is allowed for whoever paid a bill to claim its guarantors with the
following:
A. All the sum they paid.
Article (62): for every binding party who was claimed by a billby way of recourse
or was the party liable to be claimedto demand in case of paying it to be delivered
the bill along with the protest paper and a quittance with what they paid. And for
every endorser paid the bill has the right to cross their endorsement and the
following endorsements. And in case of referring to one of the binding parties with
the accepted amount of the bill value, it is allowed for whoever paid that amount to
claim from its holder to prove such a paid amount on the bill and to be delivered a
quittance with it. In addition to this, the holder of the bill shall deliver them a copy
of the bill certified with what shows that it is an original copy, and a protest paper
enabling them to assume their right in terms referring to other parties with what
they paid.

Article (63): It is not allowed to grant a grace to pay the value of the bills or to
make any procedure related to it only under the provisions provided in the law.

Article (64): If a force majeure that cannot be controlled without submitting the bill
or filing the protest on the set dates for that occurred, these dares shall be extended.

And the holder of the bill shall alert the endorser of the bill without slowing with
the force majeure, and prove this notice dated and signed by them on the bill or on
the paper attached to it. And the notices succeed until they reach the drawer
according to article 56.

When the force majeure have cleared, the drawer without slowing shall submit it for
acceptance or consideration, and file the protest if need be.

If the force majeure continues more than thirty days calculated from the maturity
date, it is allowed to have recourse to the binding parties without the need to submit
the bill or file the protest. Then, if the bill is due when viewing it or after a period of
viewing, the thirty-day period is to take effect from the date on which the holder of
the bill has notified the endorser of the bill with the incidence occurrence, even if
this date comes up before the end of the bill submission dates. The viewing period is
to increase over the thirty-day time if the bill was due paid after its viewing period.
Before the force majeure, the matters related to the holder of the bill or who is
tasked with submitting it or filing the protest are not taken into consideration.
Article 65: if the bill maturity comes around on an official holiday, it is not allowed
to claim its consideration only on the next working day, and it is not allowed to
perform any procedure related to the bill as well; in particular, submitting it for
acceptance or filing the protest only on a working day. And if it is necessary to
perform any procedure of these procedures on a specific period; the last day of
which is an official holiday, the time is to extend to the following day, and the
holiday comes in between the due days is calculated from them. And the first day of
the due days of the bill is not calculated of the regular due days or the agreement
related to the bill unless the law provides otherwise.

Bill of Recourse:

Article (66): whoever has the right of recourseto the binding parties of the bill is to
assume their right by drawing a new bill to one of their guarantors that is due paid
when viewed in this guarantor's domicile unless it is conditioned otherwise.
And the value of the bill of recourse includes the sums mentioned in the articles 60
and 61, in addition to what has been paid in terms of commission and payment fee.
If the party who drew the bill of recourse was the holder, they shall determine its
sum on the basis which was determined by virtue of the value of the due paid bill
when viewed, drawn from the place where the original bill was due to be paid to
the place where the guarantor's domicile is. And if the party who drew the bill of
recourse was one of the endorsers, they shall determine its sum which on the basis
which is determined by virtue of the value of the due paid bill when viewed, drawn
from the place where the guarantor's domicile is. Of there were more than a bill of
recourse it is allowed to claim the drawer of the original bill or any of their endorser
only by the sum of one recourse bill.
0Attachment:

It is allowed for the holder of the bill against which the non-payment protest is filed
to apply attachment to the assets of any of its binding parties after having an order
issued thereof from the body designated by the Minister of Commerce and Industry.
Seventh Chapter
Intervention in Acceptance or Payment

Article (68): the drawer of the bill, its endorser, and its substitute guarantor shall
assign whoever accepts it or pays it, if need be.
It is allowed to have the bill accepted or paid by any party intervening in favor of its
debtor and a party which can be referred to.
It is allowed that intervention is made by others; also it is allowed to be the drawer
or any party binding by virtue of the bill except the acceptor.
And whoever intervenes shall notify the party in whose favor the intervention was
made within the following two working days otherwise they are to hold responsible,
if need be, for making up for what is to result from their negligence in terms of the
harm on the condition that the compensation not go beyond the sum of the bill.

Article (69): under any circumstances, the intervention falls when the holder of the
bill worth accepting has the right of recourse before its maturity date. And if on the
bill, it is designated who accepts it or pays its value, if need be, in the place where it
is due to be paid, then the holder is not allowed to have recourse before its maturity
date to the party who made such a designation and not to the involved signees , only
if they submitted the bill to the party designated for its acceptance or its payment,
and this party refrain from its acceptance, and the holder proved such refraining
through a protest. Under other circumstances, the holder is allowed to decline the
acceptance of intervention; and if they accepted, they are to lose their rights in terms
of having recourse before the maturity date to the party in whose favor the
intervention was made and the involved signees.

Article (70): the intervention acceptance is proven on the bill itself, and it is to be
signed by the intervener; and the name in whose favor the intervention was made is
mentioned. If the intervention acceptance lacks this statement, it is to be considered
made in favor of the drawer.

Article (71): the acceptor of intervention is committed towards the bill holder and
the involved signees for in whose favor the intervention was made as much as this
latter is committed to it.

Article (72): it is allowed to pay the bill through the intervention under all the
circumstance in which its holder, in the maturity date or before it, has the right of
recourse to its binding parties. This payment is made through paying all the sum
which the party in whose favor the intervention was made was to pay. And the
payment is to be made at the most on the day following the last day on which filing
non-payment protest is allowed.

Article (73): if whoever accepted the bill by intervention or whoever designated for
its payment, if need be, a dwelling in the place where it is to be paid, its holder shall
submit it to all of them to have it paid, and to file non-payment protest, if need be,
at the most on the day following the day on which filing the protest is allowed. If
the protest is not filed on this date, whoever was assigned a payer, if need be, or
whoever the bill acceptance was made in their favor and the involved signees are to
be absolved of their commitments.

Article (74): if the bill holder declines the payment by intervention, they are to lose
their right in terms of having recourse to the party to be cleared by this payment.

Article (75): the payment by intervention shall be proven by drawing up a quittance
on the bill on which the party in whose favor the payment is made is mentioned. If
the quittance was in lack of this statement, the payment by intervention is
considered made in favor of the drawer. And the bill and protest if filed are delivered
to the party authorized with intervention.

Article (76): whoever paid the bill by intervention acquires all the rights resulting
from it towards in whose favor the payment was made and towards the binding
parties towards this latter by virtue of the bill, nevertheless it is not allowed for this
payer to re-endorse the bill, and the involved signees are cleared in whose favor the
payment was made.
Eighth Chapter
Multiplicity of Versions, Copies, and Forgery

Article (77): It is allowed to draw the bill from multiple copies compatible to each
other and on the face of each copy of it, its number is to be put, otherwise each
version of it is considered an independent bill. And each bill holder that does not
mention that it is a single version to demand a version of it at his own expense. And
in order to do that, they shall refer to the party who endorsed the bill for them; and
this party is to help them refer the former endorser and this procedure is to succeed
till they end up to the drawer. And each endorser shall write down their
endorsement on the new version.

Article 78: payment of the bill by virtue of any of its versions is a quittance even if
the bill does not condition that the payment annul the ruling of the other versions.
Nonetheless, the drawee is to remain bound to payment by virtue of each version
accepted by them and has not taken it back.

And the endorser who has endorsed the versions of the bill to different parties as
well as the involved endorsers are committed by virtue of the versions bearing their
signatures and not taken back by them.

Article (79): whoever sends any of the bill versions to have it acceptedshall clarify
on the other versions the name of the party in whose possession this version is; and
this latter shall deliver it to the legal holder for any other version. And if that party
declined to deliver it, the holder would not have the right of recourse; only if they
proved through a protest paper that the copy sent for acceptance has not been
delivered to them in spite of claiming it and the acceptance and payment has not
taken place by virtue of another version.

Article (80): the bill holder has the right to make copies out of thereof, and the
copy shall be fully identical to the actual bill in terms of the endorsements and any
other data written on thereof, and on which it is written that copying out of the
original bill has ended therewith. And it is allowed to endorse the copy and provide
collateral thereto in the manner the original bill has been treated, and the copy shall
have the same provisions as the original copy.

Article (81): the copy of the bill shall have the name of the holder of the original
copy, and this latter shall deliver the original copy to the legal holder of the copy.
And if the holder of the original copy refrained from delivering it, the holder of the
copy would not have the right of recourse to its endorsers or its substitute
guarantors; only if they proved through a protest that the original copy has not been
delivered to them upon their request.

Article (82): if the content of the bill underwent forgery, all the successive signees
would be committed to that forgery with what is stated on the forged content. As
for the former signees, they are committed to what is stated on the original content.


Ninth Chapter
Effects of the Holder's Negligence

Article (83): the holder loses their rights resulting from the bill before its drawer and
its endorsers and other binding parties, except its acceptor, if the set dates for
performing the following passed:
A. Submitting the due-paid bill when viewed or after a period of viewing.
B. Filing the non-acceptance or non-payment protest.
C. Submitting the bill for acceptance if it included the term of recourse without
fees or without protest.
In spite of that, the drawer does not benefit from that failure only if they proved that
they brought the concurrent consideration on the due date, and in this case, the
holder is only left to have recourse to the drawee.
And if the bill was not submitted for acceptance on the date conditioned by the
drawer, all its holder's rights would fail in terms of recourse because of non-
acceptance and non-payment, only if the term phrase has shown that the drawer
only meant to exempt themselves from the acceptance guarantee. And if the
endorser was the party who conditioned, when endorsing, the date of submitting
the bill for acceptance, they would be the sole beneficiary of this term.

Tenth Chapter
Not Hearing the Lawsuit

Article (84): without violating the holder's rights emanating from their original
relationship with the party who issued the bill for them, the lawsuit resulting from
the bill is not heard towards its acceptor after the passage of three years of the due
date; nor the holder's lawsuits towards the drawer or the endorsers is heard after the
passing of a year from the date of the protest issued in the regular period or from the
maturity date, if the bill included the term of recourse without fees or without
protest. And nor are the endorsers' lawsuits towards each other or towards the
drawer heard after the passage of six months of the day on which the endorser paid
the bill or on the day of filing the lawsuit.

Article (85): the said periods on the previous article do not take effect in case of
filing the lawsuit only from the last day of its proceedings, and these periods do not
take effect if a debt ruling was issued or the debtor acknowledged it on a self-
contained paper in manner that leads to renewing the debt

Article (86): Stopping these periods does not have an impact on whoever the
decisive procedure was taken in terms of these periods.


Second Part:
Promissory Note

Article (87): the promissory note includes the following data:
A. The order term or the phrase "Promissory Note" written on the content of
note and in the language in which it was written.
B. Unconditional pledge to pay a specific sum of money.
C. Maturity date.
D. Place of Payment.
E. The name for whom the payment shall take place or for their order.

Article (88): the voucher in lack of the said date on the previous article is not
considered a promissory note only in the following circumstances:
A. If the promissory note was in lack of the maturity date, it would be
considered payable when viewed.
B. If it was in lack of the place of payment or the domicile of the issuer, the
where the promissory note was created would be considered a place for
payment and the issuer.
C. If it was in lack of the place of creation, it would be considered created in the
place shown beside the name of the issuer.

Article (89): the following bill provisions take effect on the promissory note in a
manner that does not conflict with its nature:
A. The provisions related to the due-paid bill in the dwelling of any of the
guarantors or in a place unlike where the dwelling of the drawee is located,
and the disparity in terms of the data of the due-paid sum and the annulment
of the profit term and the liability of commitment, and the results ensuing
from the signature of those who do not have the liability of commitment, or
the non-binding signatures, or the signature of unauthorized party, or going
beyond the limits of authorization.
B. The provisions related to endorsing the bill and its collateral along with taking
into consideration that if the name of guarantee did not mention in the phrase
of the guarantee, then the guarantee would be made in favor of the party who
issued the promissory note.
C. The provisions related to the bill maturity, its payment, objecting to the
payment and protest, recourse because of non-payment, not allowing
granting grace periods for payment, calculation of work time and days, bill of
recourse, and attachment.
D. The provisions related to the payment by intervention, copy multiplicity,
versions, forgery, impacts of the holder's negligence, and not hearing the
lawsuit.
Article (90): the issuer of the promissory note shall be committed in the same
way as the holder of the bill. And the due-paid promissory note shall be
submitted after a specific period of viewing to the issuer on the date stated on the
article 22 approve in a way that shows the issuer has viewed the promissory note.
And this approval shall be dated and signed by the issuer. And the viewing period
starts of the date of the said party's issuer. And if the issuer refrained from putting
their approval, their refraining should be proven by a protest paper. And the date
of protest is considered a beginning for putting the viewing period into effect.

Third Part
Check

First Chapter: Issuance of the Check


Article 91: the check includes the following data:
A. The word "check" is written on the content of the instrument in the language
in which it was written.
B. An unconditional order to pay a specific sum of money.
C. The name of the party liable to pay (the drawee).
D. The date and place of the check issuance.
E. Signature of the check issuer (the drawer).

Article (92): the instrument in lack of the said data on the previous article is
considered a check only in the following two cases:
A. If the check is lack of the datum of its payment place, it shall be considered
due-paid in the place shown beside the name of the drawee. And if the places
shown beside the name of the drawee multiplied, the check shall be
considered due-paid in the first place thereof. And if the check is in lack of
these data or any other datum, it shall be considered due-paid in the place
where the main dwelling of the drawee is located.
B. If the check is lack of the datum of the issuance place, it shall be considered
issued in the place shown beside the name of the drawer.
Article (93): it is not allowed to draw the checks issued in the Kingdom, and due
to be paid in it only to a bank, and the instruments drawn in the form of checks to
otherwise are not considered valid checks.

Article (94): it is not allowed to issue a check unless at the time of issuing the check,
the drawer has money which can be cashed by a check according to explicit or
implicit agreement.
And the drawer of a check or ordering other to have it issued for them shall fulfill its
concurrent consideration. In spite of that, the drawer for others remains personally
liable only to the endorsers and the holder.
Only the drawer, in case of denial, shall prove that the drawee has its concurrent
consideration at the time of its issuance. And if they do not prove that, they shall
guarantee its payment, even if they file the protest past the specific dates. The lack of
concurrent consideration or its insufficiency does not lead to the invalidity of the
check.

Article (95): it is allowed to stipulate the payment of the check to:
A. A specific person with explicitly stating the order term or without it.
B. A specific person with stating the "Not for Order" term or any other phrase
bearing the same meaning.
C. The bearer of the check.
And the check drawn for the interest of a specific person with the phrase "or for its
bearer" stated or other similar phrase is considered a check for its bearer. And if the
name of the beneficiary is not specified, the check is considered for its bearer. And
the check including the term of "not to be circulated" is only paid to its bearer who
delivered it associated with term.

Article (96): it is allowed to be drawn for the order of the drawer themselves .And
it is allowed to be drawn for someone else's account. And it is not allowed to draw it
for the drawer themselves unless it is drawn among bank branches controlled by one
main branch. And it is conditioned that the check not be due-paid for its bearer.

Article (97): the drawer guarantees the payment of the check. And every term
exempts the drawer of this guarantee is considered none.

Second Chapter
Circulation of the Check

Article (98): the check conditioned to be paid for a specific person whether it is
explicitly stated on it for the order term or not is to be circulated by endorsement.
And the check conditioned to be paid for a specific person and written on the phrase
not for an order or other similar phrase is allowed to be circulated only by following
the provisions of assignment. And endorsement is allowed for the drawer or any
other binding party. And they are allowed to re-endorse the check. And the
endorsement for the drawee is considered as a quittance only if the drawee has
several places where the check is to be cashed and the endorsement has taken place
in favor of a place unlike the place to which the check is drawn.

Article (99): the due-paid check is circulated for its bearer once it is delivered. And
the endorsement written on the check makes the endorser liable according to the
recourse provisions, but such an endorsement does not lead to making the
instrument a check for an order.

Third Chapter
Approval of the Check

Article (100): it is not allowed for the drawee to sign the check by acceptance, and
each acceptance written on it is considered none. Nevertheless, it is allowed for the
drawee to approve the checkin black and white, and this phrase clarifies that the
concurrent consideration exists on the date of approval. And it is not allowed for the
drawee to turn down the check approval if they have concurrent consideration
enough to pay its value. The signature of the drawee on the face of the check is
considered as approval for it.


Fourth Chapter
Collateral

Article (101): it is allowed to guarantee the payment of all the sum of a check or
some of it from a guarantor. And such a guarantee comes from others except the
drawee. It is also allowed to be one of the signees of the check.


Fifth Chapter
Presenting the check and its payment

Article (102): the check is due paid onceviewed and every statement in violation of
that is considered none. And if the check is presented for payment before the day of
its issuance date, it shall be paid on the day of its presentation.

Article (103): the check drawn in the Kingdom and due to be paid therein, it shall
be presented for payment within a month. And if it is drawn outside the Kingdom
and shall be paid therein, it shall be presented within three month. And the said
dates start of the date shown on the check as an issuance date. And presenting a
check to one of the recognized clearing houses is considered as payment
presentation.

Article (104): if the check is drawn to two places with different calendar, its
issuance date is matched to the day equivalent to the payment place calendar.

Article (105): the drawee shall pay the value of a check even if its presentation date
has passed. And the drawer's objection to paying the check is accepted before its
presentation date has passed only in case of its loss, or the bankruptcy of its bearer, or
something making them not liable.
If the drawer has passed away or has gone bankrupt, or has lost their liability after
issuing the check, this does not absolve them of their responsibility.

Article (106): if several checks have been presented all at once and the concurrent
consideration is not enough to cover them all, the dates of its drawing are taken into
consideration. If all the checks presented are cut from the same checkbook and bear
the same issuance date, the numerically-preceded check has the upper hand.

Article (107): if it is conditioned that a check be paid in the Kingdom with a
currency not circulated therein, the payment of its sum shall be paid on the date of
the check presentation with the currency circulated in the Kingdom according to its
price on the day of payment. If the payment has not taken place on the day of
presentation, then the bear has the option of demanding either the sum of the check
in the currency circulated in the Kingdom according to its price on the day of
presentation or on the day of payment. If the check has been presented for the first
time after the passage of its presentation day, then, it is gone by the price of the day
on which the presentation day has ended and it follows the commonly-recognized
laws in the Kingdom in terms of the foreign currency circulation. But the drawer is
allowed to determine on the check the price according to which the sum due to be
paid is calculated. And if the sum of the check is determined by a currency bearing
the same name but its value in the issuance country differs from its value in the
payment country, then this means the currency of the payment country.

Sixth Chapter
Refraining of Payment

Article (108): if the bearer of a check presents it in the legal date to the binding
parties, combined or individual, and its value is not paid, it is allowed to prove the
refraining through filing a protest. And instead of filing a protest, it is allowed prove
refraining from payment:
A. A statement issued by the drawee with the day of a check presentation stated.
B. A statement issued by a recognized clearing house on which it is mentioned
that the check has been presented on the legal date and its value has not been
paid.
The statement in the said two cases shall be dated and written on the check itself,
and signed by the party issued it; and it is not allowed to refrain from putting this
statement on the check if demanded by the bearer, even if the check includes
without-fee recourse term. But it is allowed for the binding party personally to
demand a grace period not exceeding the following working day of the check
presentation, even if it is presented on the last day of the check presentation.

Article (109): payment refraining shall be proven in the manner provided on the
former article before the passage of the presentation dates. So, if the presentation has
taken place on the last day of this date, then it is allowed to prove the payment
refraining on the following working day.

Seventh Chapter
Version multiplicity, photocopies, and forgery

Apart from the check is for is its bearer, it is allowed to draw the check from several
versions compatible with each other if it is drawn from a country and due to be paid
in another country. In this case, it shall be put on the content of each version its
number otherwise each version is considered a self-contained check.

Eighth chapter
Lined check and account-recorded check

Article (111): it is allowed for the drawer of the check and its bearer to line it
through putting two parallel lines on the face of the check, and lining is either
general or special. So, if the in-between two lines is proven blank of any statement
or if the word "Bank" is written in-between, or any other work bearing this
meaning, this means that lining is general. But if the name of a specific bank is
written in-between the lines, this means that the lining is special. And it is allowed
to change the general lining into special lining, but the special lining cannot change
into general lining. Crossing the lining or the name of the bank written in-between
is considered none.

Article (112): it is allowed for the drawee to pay generally-lined check only to one
of its clients or to a bank. And it is allowed specially-lined check only to the bank
whose name is written between the two lines and to this bank's client if this latter is
the drawee. In spite of this, it is allowed for the bank whose name is written
between the two lines to trust tie another bank to be cashed the value of the check.

It is allowed for the bank to obtain a lined check only from one of their clients or
from another bank, nor is its value to be cashed for other persons' account unlike the
said client. And if the check bears several lines, it is allowed for the drawee to pay it
only if the check bears two lines; and one of them is to have its value cashed by a
clearing house.

Article (113): it is allowed for the drawer of the check or its bearer to condition not
pay it in cash though putting on the face of it the phrase "Account-deposited" or any
other phrase giving the same meaning. In this case, the drawee is only to settle the
value of the check through written records such as account-recording, bank
transfer, and clearing house. And these records acts like the consideration, and
crossing the "Account-recording" item is not taken into consideration.
Article 114: if the drawee does not take into consideration the former provisions,
they shall be liable to make amends with what does not go beyond the sum of the
check.

Ninth Chapter
Impacts of the Bearer's Negligence (failure)

Article (115): the bearer of the check loses all what they have in terms of rights
towards the drawer, endorsers, and other binding parties except the drawee by the
passage of the dates set or presenting the check for the drawee, or filing the protest,
or what acts like it on the set date. Nevertheless, the drawer benefits from this ruling
only if they have presented the concurrent consideration and this consideration has
remained in the drawee's possession until the passage of the date of the check
presentation; then the consideration has gone away by a factor that is out of the
drawer's control.


Tenth Chapter
Not Hearing the Lawsuit

Article (116): the lawsuits of the bearer's recourse to the drawee, the drawer, and
the endorser and other binding parties are not heard after the passage of six months
of the end of the date of the check presentation. And the lawsuits of the check
payment binding parties' recourse towards each other are not heard after the passage
of six month if the day on which the binding party cashed the check or on the day
on which the lawsuit is filed.

Eleventh Chapter
Rules of the Bill Applied to the Check

Article (117): in addition to the special provisions mentioned on this part, the
provisions of the bill mentioned on the articles 4, 6, 7, 8, 10, 13, 14, 15, 16, 17, 18,
19, 20, 31, 33, 34, 1, 2, 36, 37, 44, 45, 49, 50, 51, 52, 53, 54, 2, 3, 4, 55, 4, 5, 56,
57, 58, 58, 1; and the second and third terms of the second and third paragraphs, 60,
61, 62, 63, 64, 65, 67, 77, 2, 78, 80, 81, 82, 85, 86, 87 are applied to the check to
the effect that it does not conflict with its nature.

Twelfth Chapter
Penalties

Article (118): whoever issues a bounced check ill-intentioned and payable., or that
has a concurrent consideration less than the value of the check; and whoever ill-
intentioned takes back after rendering the check payable or some thereof to the
effect that the remainder has been rendered not enough to cover the value of the
check; or whoever orders ill-intentioned the drawee not to pay its value shall be
fined a hundred Saudi Riyals to two thousands Saudi Riyals and be sentenced to
prison for no less than fifteen days and no more than six months, or any of these two
penalties.

And these penalties shall be applied to the beneficiary or the bearer who receives ill-
intentioned a bounced check; and these said penalties shall be applied taking into
account what the Islamic sharia rulings could provide.

Article (119): with the Islamic Shariah rulings taken into account, any drawee ill-
intentioned declined to cash a check that is validly drawnand has a concurrent
consideration, and no protest has been filed thereof; without falling short of the
compensation due to the drawer about what they sustain of harm as a result of
thenone-payment shall be fined no less than a hundred Saudi Riyals and no more
than two thousands Saudi Riyals. These penalties shall be applied to every drawee
knowingly signs a check with a concurrent consideration less than what they already
have.

Article (120): with the Islamic shariah rulings taken into consideration, it is fined
with no more than five hundred Saudi Riyals whoever:
B. Issues a check that is dateless or is incorrectly dated.
C. Draws a check to any place rather than a bank.
D. Pays a dateless check, and is delivered this check though the clearing house.