THE LAW FIRM OF HAZIM AL MADANI ATTORNEYS AND LEGAL CONSULTANTS
Receipt of Trust and Procedures for Filing a Lawsuit
A receipt of trust is a document that proves a person has received a sum of money or something of value from another person as a trust, and that they are obligated to return it at a specified time or upon request. A receipt of trust is strong evidence of indebtedness, and the person who gave the trust can file a lawsuit against the receiver if they do not fulfill their obligation.
Regulating the receipt of trust in the Kingdom is the Anti-Fraud and Trust Betrayal system issued by Royal Decree No. (D / 79) on 10/9/1442 AH, which stipulates strict penalties for those who betray trust or defraud money. The system has defined severe penalties for those who betray trust, based on the text of Article Three, which includes the following:
Anyone who unlawfully seizes money that was delivered to him due to his work or as a trust, partnership, deposit, loan, lease, mortgage, or agency, misuses it in bad faith, or deliberately causes damage to it, other than public money, shall be punished with imprisonment for a period not exceeding (five) years, and a financial fine not exceeding (three) million riyals, or one of these two penalties.
The Kingdom’s policies aim to promote a culture of trust in society. They provide the necessary support and legislation to protect public and private funds and encourage people to commit to high morals and values in their daily lives. For example, the National Anti-Corruption Commission was established in the Kingdom to combat bribery and corruption and promote integrity and transparency in the public and private sectors.
We want to point out that the receipt of trust has a significant impact on the economic and social development of the Kingdom. When there is trust between individuals and between companies and institutions, cooperation, stability, and sustainable development are enhanced.
However, we may witness some challenges toward the receipt of trust in the Kingdom. Some individuals and entities may be inclined towards corruption and illegal exploitation of power and resources. Nevertheless, the Kingdom is committed to combating corruption and promoting transparency, and it takes strong measures to punish the guilty and promote a culture of trust and integrity.
The Kingdom adopts several measures to achieve the receipt of trust. These measures include laws and regulations that regulate business and financial transactions and define responsibilities and duties. The Kingdom also promotes transparency and provides means to report potential corruption and violations through electronic platforms and investigation mechanisms.
Here we would like to mention the conditions and documents to prove the right and claim the debt, which are:
Regulating the receipt of trust in the Kingdom is the Anti-Fraud and Trust Betrayal system issued by Royal Decree No. (D / 79) on 10/9/1442 AH, which stipulates strict penalties for those who betray trust or defraud money. The system has defined severe penalties for those who betray trust, based on the text of Article Three, which includes the following:
Anyone who unlawfully seizes money that was delivered to him due to his work or as a trust, partnership, deposit, loan, lease, mortgage, or agency, misuses it in bad faith, or deliberately causes damage to it, other than public money, shall be punished with imprisonment for a period not exceeding (five) years, and a financial fine not exceeding (three) million riyals, or one of these two penalties.
The Kingdom’s policies aim to promote a culture of trust in society. They provide the necessary support and legislation to protect public and private funds and encourage people to commit to high morals and values in their daily lives. For example, the National Anti-Corruption Commission was established in the Kingdom to combat bribery and corruption and promote integrity and transparency in the public and private sectors.
We want to point out that the receipt of trust has a significant impact on the economic and social development of the Kingdom. When there is trust between individuals and between companies and institutions, cooperation, stability, and sustainable development are enhanced.
However, we may witness some challenges toward the receipt of trust in the Kingdom. Some individuals and entities may be inclined towards corruption and illegal exploitation of power and resources. Nevertheless, the Kingdom is committed to combating corruption and promoting transparency, and it takes strong measures to punish the guilty and promote a culture of trust and integrity.
The Kingdom adopts several measures to achieve the receipt of trust. These measures include laws and regulations that regulate business and financial transactions and define responsibilities and duties. The Kingdom also promotes transparency and provides means to report potential corruption and violations through electronic platforms and investigation mechanisms.
Here we would like to mention the conditions and documents to prove the right and claim the debt, which are:
- • First: The receipt must be written in the receiver's handwriting or accompanied by his fingerprint and contain the date and value of the trust and the name of the giver, receiver, and witnesses.
- • Second: The debtor must be warned to pay by a record before filing a lawsuit in court, and if they do not pay, a formal complaint must be filed with the department to which they belong in their place of residence.
- • Third: The original receipt of trust and a copy of it, along with a copy of the complainant's personal identification and their proxy if any, must be attached, and a record of this must be established with the competent officer.
- • Fourth: The court to be tried in should be chosen, and an automatic request number associated with the court should be created to follow up on the lawsuit by the given request number.
In conclusion, we would like to point out that the receipt of trust in the Kingdom is a fundamental task to achieve sustainable development and social and economic prosperity. It enhances trust between individuals and supports stability and constructive cooperation thanks to the ongoing efforts to promote trust and combat corruption.
The contents of these pages are for your general information and public use only, and is subject to adjustment without prior notice. We do not provide any undertakings or guarantees of the accuracy of the contents and information covered in this document and it may contain errors and mistakes. Therefore, we explicitly disclaim any responsibility on our part that may result from any mistake or error to the maximum extent permissible under the law. Your use of the information provided in this document is at your own risk without taking any responsibility on our part. You are solely responsible for ensuring that any information available in this website does meet and comply with your specific requirements.