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Expansion of Applicable Sphere: A way to Uniformity/陆栋生(9)

If we compare the territorial requirement in the two conventions, we would find the regulation is not identical. The UNIDROIT Convention requires the factor’s place of business is in contracting States while the UNCITRAL Convention requires not the factor (assignee), but the assignor has its place of business in contracting States. When probing the reason for this, one has to take into account that the UNDROIT Convention was drafted by a small group of experts who basically represent the interests of the factor (banks and financing institutions). The regulation maker is to protect the preferential and leading position of banks, and it’s no surprising that the UNDROIT Convention chooses factor’s place as connecting point. Actually in the two kinds of legal relationship in a receivables financing: the underlying trade relationship between the supplier and the debtor, and the receivables assignment between assignor (supplier) and the assignee, the key role connecting these two kinds of relationship is just the assignor, who would participate in both the two transactions and play the most important role. The UNCITRAL Convention recognizes the key status of the assignor and put its place of business as connecting point.


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