"the International Trade Of The United Nations Convention On The Assignment

In July 2001, after a six-year process, the United Nations Commission on International Trade Law (UNCITRAL) completed its work on the multilateral "Convention on the Assignment of Receivables in International Trade". The Convention was adopted by the United Nations General Assembly on December 12,2001 and is now open for signature and ratification or accession by countries.The rules of the Convention are intended to facilitate cross-border transactions involving the assignment of receivables. For these transactions, the Convention would reduce or eliminate a number of obstacles to efficient commercial practices. In particular, the Convention would create a minimum level of uniformity in the legal rules applicable to these transactions. It would also provide greater certainty on various substantive law issues and greater predictability on some significant choice of law issues. If the Convention becomes effective in a sufficient number of States, it will have a beneficial effect on cross-border factoring, forfaiting, securitization, and project finance transactions.Among the more significant provisions of the Convention facilitating cross-border transactions involving the assignment of receivables are: the validation of an assignment of future receivables by means of a present assignment; the validation of assignments of receivables in bulk; the validation of assignments of partial and undivided interests in receivables; the partial override of contractual anti-assignment provisions; the principle of special protection for the debtor in the receivables assignment; a choice of law rule looking to the internal law of the State in which the assignor is located to determine the priority of an assignee's interest in assigned receivables.This paper is a study on the Convention, which was believed to be significance in the field of assignment of receivables in the near future. Four part...