The Indication of the Place Where the Check Was Issued the City in Which the Drawer Resides
| No: 251000001755 | Date(g): 5/6/2004 | Date(h): 17/4/1425 | Status: In-Force |
Translated Document
SAMA has noticed that the checks issued by banks to their clients do not include the place of issuance, nor do they reference the address next to the name of the drawer.
Since the place of issuance of a check is one of the mandatory details stipulated in Article 91 of the Commercial Papers Law, and since Article 92 of the same law states that a check devoid of the mandatory details mentioned in the previous article is not considered a check except in two cases, one of which is if the check lacks the place of issuance, it is deemed to have been issued at the location specified next to the drawer.
Therefore, in the absence of the place of issuance, a check may lose its value as a commercial instrument, leading to potential damages. SAMA hopes that this will be considered when issuing new checkbooks for your clients, ensuring that the name of the city where the bank client resides is added alongside their name on the check.