[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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