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Record W1593179291

The Priority Rules of the United Nations Receivables Convention

2002· article· en· W1593179291 on OpenAlexaboutno aff
Michel Deschamps

Bibliographic record

VenueDuke journal of comparative & international law · 2002
Typearticle
Languageen
FieldBusiness, Management and Accounting
TopicLaw, logistics, and international trade
Canadian institutionsnot available
Fundersnot available
KeywordsAccounts receivableConventionBankruptcyDebtorInternational trade lawLawStatutory lawConflict of lawsLetter of creditBusinessLaw and economicsEconomicsPolitical scienceCreditorFinance
DOInot available

Abstract

fetched live from OpenAlex

I. INTRODUCTION In his comprehensive summary of the provisions of the United Nations Convention on the Assignment of Receivables in International Trade (1) (the Convention), Spiros Bazinas (2) points out correctly that one of the significant features of the Convention is to make subject to the law of the assignor any priority conflict between the assignee of a receivable and third parties claiming an interest in the same receivable, including a trustee in the bankruptcy of the assignor. (3) The policy decision to turn away from more traditional approaches represents significant progress in the development of international commercial law and the harmonization of conflict-of-laws rules in the area of secured transactions. This comment will analyze the reasons for the adoption of this rule at the international level, as well as its practical implications. The first section explains why any priority contest between competing claimants of the same receivable must be governed by a single law. The second section reviews the advantages and disadvantages of the solution retained by the Convention, namely, that the law applicable to priorities shall be that of the location of the assignor. (4) Finally, the third section examines how the conflict rule of the Convention would operate under certain scenarios likely to occur in commercial transactions. Under the Convention, a person who transfers or creates a over a receivable is called the assignor. The transferee or holder of the is the assignee. The debtor is the person who owes payment of the receivable. (5) Under the U.S. Uniform Commercial Code (U.C.C.) and the Canadian Personal Property Security Acts, the corresponding terms are debtor (instead of assignor), secured party (instead of assignee), and account debtor (instead of debtor). (6) This comment employs the terms assignor, assignee, and debtor, attaching to such words their respective meaning under the Convention. Likewise, the expression security is used herein to describe the North American concept of interest. The term in the Convention refers to a sovereign state or country. However, if a state has two or more territorial units in which different systems of law are applicable in relation to certain matters, any reference in the Convention to the law of that state means, with respect to such matters, the law in force in the applicable territorial unit. (7) II. A SINGLE GOVERNING LAW FOR PRIORITIES A lender who provides credit on the of receivables needs to ensure that its will be enforceable against third parties. The commercial value of a right depends on whether the holder of the right will be entitled to priority against competing claimants, such as another secured creditor, an unsecured creditor, a purchaser of the collateral, or a trustee in the bankruptcy of the borrower. The same need exists where receivables are financed through a sale to a factor or under a securitization program. Indeed, many legal systems contain specific provisions intended to solve a priority contest among several persons claiming an interest in the same receivable. (8) The absence of rules in this regard deters the use of receivables as collateral. The problem is compounded in an international transaction where there is uncertainty as to which law would apply to settle a potential conflict of priority between several persons purporting to have a right to the receivable. The Convention therefore is a milestone in the development of international commercial law, as it permits an easy determination of the body of rules to be used to solve priority conflicts. Any conflict involving an international assignment or an international receivable would be resolved by referring to one single law, namely the law of the location of the assignor. (9) This is a significant achievement for two main reasons. First, the private international law rules of many states do not provide clear guidance or have given rise to controversies as to the law governing a priority contest in relation to receivables. …

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How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.000
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: none
Teacher disagreement score0.945
Threshold uncertainty score0.342

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0000.000
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.000
Science and technology studies0.0000.001
Scholarly communication0.0000.001
Open science0.0010.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.072
GPT teacher head0.289
Teacher spread0.217 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designTheoretical or conceptual
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations1
Published2002
Admission routes1
Has abstractyes

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Same venueDuke journal of comparative & international lawSame topicLaw, logistics, and international tradeFrench-language works237,207