98-27510. Secretary of State's Advisory Committee on Private International Law (ACPIL) Study Group on Assignment in Receivables Financing; Request for Comment

[Federal Register Volume 63, Number 198 (Wednesday, October 14, 1998)]
[Notices]
[Page 55173]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-27510]


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DEPARTMENT OF STATE

[Public Notice No. 2904]


Secretary of State's Advisory Committee on Private International 
Law (ACPIL) Study Group on Assignment in Receivables Financing; Request 
for Comment

    The Department of State's Office of the Assistant Legal Adviser for 
Private International Law is seeking private sector comment on a 
proposed international convention on assignment in receivables 
financing (the `Convention'). The Convention is sponsored by the United 
Nations Commission on International Trade Law (UNCITRAL), and the 
initial draft is the result of cooperative efforts between the United 
States and approximately fifty United Nations Member States.
    The purpose of the Convention is to create a uniform international 
law on assignment in receivables financing transactions in order to 
facilitate the use of this type of financing arrangement 
internationally. While receivables financing is quite common in the 
United States and has defined legal parameters in the form of the 
Uniform Commercial Code Article 9, it is relatively new and 
infrequently used in some other countries, especially developing 
markets. One goal in negotiating the Convention is to help introduce 
receivables financing to more countries, in the hope that new uniform 
ways of extending financing and creating security interests may spur 
investment, increase economic growth and provide companies with 
additional commercial opportunities.
    The Convention would cover assignments of receivables (i.e. 
contractual and other rights to payment) where the assignor is located 
in one country and the account debtor is located in another country. It 
would also cover assignments of receivables where the assignor and the 
assignee are located in different countries. The assignments addressed 
would include secured transactions as well as true sales and, 
accordingly, would impact upon asset based financing, factoring, 
securitization and project finance.
    While the Convention is not scheduled to be finalized until mid-
2000, it is important to receive comments from various industry groups 
now, so that there is an opportunity to address concerns and questions 
while the Convention is still in the developmental phase. Specifically, 
comments would be helpful on: (i) whether it would benefit certain 
industries or common industry transactions to be included or excluded 
from the Convention, and (ii) assuming an industry is included, what 
provisions would be helpful in order to best facilitate that industry's 
transactions.
    Requests for a copy of the latest version of the Convention may be 
sent to Ms. Allison Gray by fax at [phone], by phone at (202) 
776-8422, or by e-mail to [e-mail]>. Comments on the Convention 
may be directed to Ms. Gray at the above numbers and e-mail address or 
by mail to L/PIL, Room 357 South Building, 2430 E Street, NW., 
Washington, DC 20037-2800.
Jeffrey D. Kovar,
Assistant Legal Adviser for Private International Law.
[FR Doc. 98-27510 Filed 10-13-98; 8:45 am]
BILLING CODE 4710-08-M