The Indication of the Place Where the Check Was Issued (the City in Which the Drawer Resides)

Saudi Arabian Monetary Authority Main Office

Legal Administration No.: 11087 / Q / 755 Date: 17/4/1425 AH Attachments: Corresponding Date: 5/6/2004 AD

Circular to All Banks Operating in the Kingdom

To: ................................................................................................. Respected Bank,

Greetings, Subject: Necessity of Stating the Place Where the Check Was Issued (the City in Which the Drawer Resides) Next to His Name on the Check.

The Authority has observed that checks received by banks for their clients do not include a statement of the place of issuance, nor is there an indication of the address next to the drawer's name.

Since the place of issuance is one of the mandatory data points stipulated in Article 91 of the Negotiable Instruments Law, and since Article 92 of the same Law stipulates that an instrument lacking the aforementioned mandatory data is not considered a check except in two cases, including that if the check lacks a statement of the place of issuance, it is deemed issued in the location stated next to the drawer.

Given that failure to state the place of issuance may cause the check to lose its value as a commercial instrument, and due to the resulting adverse effects, the Authority requests your compliance with this when issuing new checkbooks for your clients, by adding the city where the bank client resides next to his name as stated on the check.

For your information and action.

Yours sincerely,

Acting Governor Jumaiz bin Abdullah Al-Suhaimi

Postal Address: Riyadh 11169, Kingdom of Saudi Arabia, Fax 466 2655, Phone 463 3000