In brief
Governs bills of exchange, promissory notes and cheques: issue, endorsement, payment, recourse against those liable and limitation periods, and criminalises bounced cheques.
Summary of the law
Key points
- A holder's recourse claims on a cheque are not heard six months after the presentment period ends (Article 116).
- Bills of exchange have presentment and limitation periods (including Articles 39 and 84), so do not delay.
Cheque offences
- Article 118 as amended by Royal Decree M/45 of 1409H: up to three years' imprisonment and SAR 50,000, or either, for issuing in bad faith a cheque without sufficient funds, withdrawing the funds, stopping payment or deliberately making it unpayable, and for a payee who receives a cheque without sufficient funds.
- For a repeat within three years of the judgment: up to five years and SAR 100,000 (Article 118 as amended).
A plain-language summary prepared by Al-Bayan Al-Wadih Law Firm, focused on the violations and problems that come up most in daily life. It is not a substitute for the official text or for legal advice.
What it covers
- Bills of exchange and promissory notes
- Cheques
- Recourse and limitation
- Cheque offences
Timeline
- Issued: Royal Decree 37 · 11/10/1383H
- Amendments: Royal Decree M/45 · 12/9/1409H. Amendment to some articles (shown on the law's page at the Bureau of Experts)
Full record of amendments and regulations at the official source
Official text at the Bureau of Experts
The authoritative text is in Arabic; the Bureau of Experts publishes English translations for some laws.
Full official text
The full official text is in Arabic and is reproduced on the Arabic version of this page, as published by the Bureau of Experts at the Council of Ministers. Read the full Arabic text
Library content is simplified general information for awareness only. It is not legal advice and does not replace the official text. Laws change: always check the official source and consult a lawyer before acting. Library data last reviewed: .