[Senate Treaty Document 114-7]
[From the U.S. Government Publishing Office]
114th Congress } { Treaty Doc.
SENATE
2d Session } { 114-7
_______________________________________________________________________
U.N. CONVENTION ON THE ASSIGNMENT OF RECEIVABLES IN INTERNATIONAL TRADE
__________
MESSAGE
from
THE PRESIDENT OF THE UNITED STATES
transmitting
THE UNITED NATIONS CONVENTION ON THE ASSIGNMENT OF RECEIVABLES IN
INTERNATIONAL TRADE, DONE AT NEW YORK ON DECEMBER 12, 2001, AND SIGNED
BY THE UNITED STATES ON DECEMBER 30, 2003
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February 10, 2016.--Treaty was read the first time, and together with
the accompanying papers, referred to the Committee on Foreign Relations
and ordered to be printed for the use of the Senate
______
U.S. GOVERNMENT PUBLISHING OFFICE
59-118 WASHINGTON : 2016
LETTER OF TRANSMITTAL
----------
The White House, February 10, 2016.
To the Senate of the United States:
With a view to receiving the advice and consent of the
Senate to ratification, subject to certain declarations and
understandings set forth in the enclosed report, I transmit
herewith the United Nations Convention on the Assignment of
Receivables in International Trade, done at New York on
December 12, 2001, and signed by the United States on December
30, 2003. The report of the Secretary of State, which includes
an overview of the proposed Convention, is enclosed for the
information of the Senate.
The Convention sets forth modern uniform rules governing
the assignment of receivables for use in international
financing transactions. In particular, the Convention
facilitates the use of cross-border receivables financing by:
(a) recognizing the legal effectiveness of a wide variety of
modern receivables financing practices; (b) overriding certain
contractual obstacles to receivables financing; and (c)
providing clear, uniform conflict-of-laws rules to determine
which country's domestic law governs priority as between the
assignee of a receivable and competing claimants.
As a global leader in receivables financing, the United
States actively participated in the negotiation of this
Convention at the United Nations Commission on International
Trade Law with the support of U.S. business interests. Drawing
on laws and best practices prevalent in the United States and
other countries where receivables financing flourishes, the
Convention would promote the availability of capital and credit
at more affordable rates and thus facilitate the development of
international commerce. Widespread ratification of the
Convention would help U.S. companies, especially small- and
medium-sized enterprises, obtain much-needed working capital
financing from U.S. banks and other lenders to export goods,
and thereby help create more jobs in the United States.
The rules set forth in the Convention do not differ in any
significant respect from those contained in existing U.S. law.
In particular, in virtually all cases application of the
Convention will produce the same results as those under the
Uniform Commercial Code Article 9, which all States and the
District of Columbia, Puerto Rico, and the Virgin Islands have
enacted.
I recommend, therefore, that the Senate give early and
favorable consideration to the Convention and give its advice
and consent to ratification, subject to certain declarations
and undertakings set forth in the enclosed report.
Barack Obama.
LETTER OF SUBMITTAL
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Department of State,
Washington, April 14, 2015.
The President,
The White House.
The President: I have the honor to submit to you, with a
view to its transmittal to the Senate for advice and consent to
ratification, the United Nations Convention on the Assignment
of Receivables in International Trade, which was adopted at New
York on December 12, 2001, and signed by the United States on
December 30, 2003. Also enclosed is an Overview of the
Convention, which includes a detailed article-by-article
analysis.
The Convention sets forth modern uniform rules relating to
the assignment of commercial receivables for use in
international financing transactions. Receivables are a
business's right to future payment from its customers for goods
or services provided. When businesses need cash on hand, they
may sell their accounts receivable or use them as collateral to
obtain cash. These so-called ``assignments'' of receivables are
common in the United States and are governed by clear and
predictable rules under uniform state law. When these
transactions cross international borders, however, U.S. rules
may not apply, and many countries' laws are not well-suited to
modern receivables financing practices. The result can be both
uncertainty as to which rules apply to cross-border
transactions and, depending on which rules apply, the
application of unhelpful rules.
The Convention addresses both of these issues. First, it
provides certain uniform substantive rules that enable
receivables financing practices that have proven to be
beneficial in the United States and other countries. For
example, the Convention ensures that an assignment of trade
receivables is effective notwithstanding certain contractual
provisions that would prevent the assignment of receivables.
Second, the Convention provides clear conflict-of-laws rules as
to a major issue in cross-border receivables financing, that
is, which country's law governs the priority of an assignee's
claim to receivables as against competing claimants.
As a global leader in receivables financing, the United
States participated actively in the negotiation of this
Convention. The rules set forth in the Convention do not differ
in any significant respect from those contained in existing
U.S. law. In particular, in virtually all cases, application of
the Convention will produce the same results as those under the
Uniform Commercial Code (UCC) Article 9, which all U.S. states
and the District of Columbia, Puerto Rico, and the Virgin
Islands have enacted.
Widespread ratification of the Convention should help U.S.
companies obtain access to working capital financing and
increase their exports, thereby creating additional U.S. jobs.
As of March 2015, four countries, including the United States,
have signed the Convention but only one country has acceded to
it.
It is hoped that U.S. ratification of this Convention will
encourage other countries to become party to it.
The Department consulted extensively with members of the
Uniform Law Commission (ULC) and the American Law Institute
(ALI) in the development of the Convention. After the
Convention was concluded, an extensive review was conducted
under ULC auspices, including knowledgeable members of the ALI
and other associations, to examine the consistency of the
Convention with U.S. law and practice and the best means of
domestic implementation of the Convention. These views have
been helpful to the Department in formulating the analysis and
recommendations contained in the enclosed overview of the
Convention.
The Convention would be self-executing and there would not
be a need for the enactment of implementing legislation.
I recommend, therefore, that you transmit the Convention to
the Senate for advice and consent to ratification.
Respectfully submitted.
John F. Kerry.
Enclosures: As stated.
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