UNCITRAL Model Law on International Credit Transfers
- Type: Model Law
- Date of signature: 15/05/1992
- Place of signature: New York, USA
- Depositary: United Nations Commission on International Trade Law (UNCITRAL)
- Date of entry into force: N/A
What is it about?
The Model Law, adopted in 1992, deals with operations beginning with an instruction by an originator to a bank to place at the disposal of a beneficiary a specified amount of money. It covers such matters as the obligations of a sender of the instruction and of a receiving bank, time of payment of a receiving bank and liability of a bank to its sender or to the originator when the transfer is delayed or other error occurs.
Why is it relevant?
The UNCITRAL Model Law was prepared in response to a major change in the means by which funds transfers are made internationally. This change involved two elements: the increased use of payment orders sent by electronic means rather than on paper, and the shift from the generalized use of debit transfers to the generalized use of credit transfers. One result was that previous efforts to unify the law governing international debit transfers were not relevant to the new funds transfer techniques. The Model Law offers the opportunity to unify the law of credit transfers by enacting a text that is drafted to meet the needs of modern funds transfer techniques.
This Model Law is not an international convention and can not be the object of ratification. Rather, it acts as a reference document for the formulation of national law. The European Parliament and the Council of the European Union published, in 1997, a directive based on the Model Law of 1992.