Rules and Conditions of
Scheduling Public Treasury
Receivables*
*
These rules and conditions have been issued by the Ministry of Justice circular No.
13/T/2723, dated 7.1.1426 AH, pursuant to the Council of Ministers resolution No.
202 dated 1.8.1426 AH.
Rules and Conditions of Scheduling Public Treasury Receivables
The Council of Ministers,
Upon reviewing the documents received from the Bureau of the
Presidency of the Council of Ministers under No. 3/B/23645, dated
9.5.1425 AH and dated 6.3.1424 AH concerning the proposed approval
of the scheduling of public treasury receivables from citizens unable to
pay them in one installment; and
Upon reviewing the State Money Collection Law issued by Royal
Order No. 41/3/2, dated 12.4.1395 AH; and
Upon reviewing article 20 of the Civil Service Law issued by Royal
Decree No. M/49, dated 10.7.1397 AH; and
Upon reviewing articles 17 and 32 of the Civil Retirement Law issued
by Royal Decree No. M/41 dated 26.7.1393 AH; and
Upon reviewing the Council of Ministers Resolution No. 504 dated
17.4.1393 AH; and
Upon reviewing minutes of meeting No. 419 dated 23.11.1425 AH and
minutes of meeting No. 211, dated 4.6.1426 AH prepared at the
Commission of Experts; and
Upon reviewing the two recommendations of the General Board of the
Council of Ministers No. 685, dated 27.12.1425 AH and No. 335 dated
12.6.1426 Ah.
Resolves as follows:
Approval of scheduling of the public treasury receivables due from
citizens unable to pay them in one installment and exempting them from
these debts in case of insolvency or bankruptcy in accordance with the
following rules:
1. The debtor shall apply to the creditor department requesting
installment of the debt payable from him stating his inability to pay it in
one installment. In case the debtor is an establishment or a company, the
said application shall be accompanied by balance sheets approved by a
chartered accountant along with statements of the movements of his
accounts with all banks for the last two years. However, if the debtor is
an individual, it is sufficient to submit the movements of his accounts
with all banks for the last two years.
2. The creditor department shall review the application of the debtor to
ensure that all accompanying documents are complete and to propose
the installments and their amounts in agreement with the debtor. The
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Rules and Conditions of Scheduling Public Treasury Receivables
installments shall be estimated as per the debtor's balance sheet,
commercial movements, contractual obligations with the state or
otherwise provided that the period of installments shall not exceed ten
years. The suitable method of the collection of debts shall be determined
either in cash, by cheques, promissory notes or deductions from the
amounts payable to the debtor or the like.
3. After having been studied by the creditor department, applications
and supporting documents shall be forwarded to the Ministry of Finance
to double check the required documents and bank accounts statements
submitted by the debtor and to check his balances with banks through
the Saudi Arabian Monetary Agency.
4. After obtaining approval from the Ministry of Finance on the
instalment of the debt based on the result of the study of the application
by the committee provided for under article 18 of the State Money
Collection Law comprising a representative of the Ministry of Finance, a
representative from the creditor department and a legal advisor from the
Ministry of Finance, the creditor department shall notify the debtor of
the approval of his application, follow up payment of instalments,
informing him of their dates before they are mature and take necessary
accounting actions to document payment of instalments.
5. If the debtor delays payment of any mature instalment, he shall be
served with a written notice, and after the lapse of fifteen days, he shall
be served another written notice. If he fails to report within fifteen days
to pay the instalment payable from him or to produce justifications
explaining the reasons for stopping payments, the instalment scheme
will be cancelled and the remaining instalments shall become payable.
The creditor department shall claim payment of the debt in one
instalment and apply the provisions of the confiscation procedures
manual issued by the Ministry of Finance circular No. 9/2/67192, dated
15.11.1424 AH.
6. After coordination with the Ministry of Finance, the creditor
department may reschedule the instalments if convinced of the reasons
produced by the debtor if he delays payment of the instalments due
from him.
7. The rules of scheduling under the previous paragraphs shall not be
applied to the debts paid in the form of instalments under relevant
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Rules and Conditions of Scheduling Public Treasury Receivables
contracts until the contractual relationship is terminated or the debts
resulting from theft or forgery.
8. If five years lapse since the maturity date of the payment of the debt,
if all follow up procedures provided for in the Ministry of Finance
circular No. 9/2/67192, dated 15.11.1424 AH are exhausted, if no
agreement with the debtor to schedule the debt is reached in a manner
that renders it definitely impossible to collect it or part of it and if the
debtor fails to pay the debt, he will be dealt with as follows:
a. If the amount of debt is not more than one hundred thousand riyals,
the creditor department shall forward the subject to the Ministry of
Finance to submit to the committee provided for under paragraph 4
hereinabove to study the application and consider releasing the debtor
from the said debt.
b. If the amount of debt is more than one hundred thousand riyals and
the debtor submits to the creditor department legal proofs of insolvency
in accordance with the Sharee'ah Law of Procedure or his bankruptcy,
the creditor department shall forward the whole subject to the Ministry
of Finance to submit to the committee provided for under paragraph 4
hereinabove to check the correctness of the procedures and legal
supporting documents. The committee shall issue its executive decision
and provide pertinent authorities with copies thereof.
9. If the debtor dies and it is legally proved that he has left no estate to
be charged with the debt, he shall be released from the debt.
10. Exemptions for those convicted of theft, forgery or fraud crimes
shall not be considered.
Prime Minister
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