Turkish law and the UNCITRAL’s work on the assignment of receivables with a special reference to the assignment of future receivables

Akseli, Orkun

Abstract

Raising finance by the assignment of receivables is an important financing technique and its regulation varies under different legal systems. The UNCITRAL Convention on the Assignment of Receivables in International Trade (“the UNCITRAL Convention”) was adopted in 2001 by the General Assembly. The UNCITRAL Convention was prepared to establish a sophisticated, comprehensive and potentially far-reaching model for the modernisation of domestic assignment laws of countries and a substantive step for harmonisation of the law of assignment of receivables in international trade. The UNCITRAL Convention not only affects assignment transactions but also securitisation and project financing. The key objective of the UNCITRAL Convention is to facilitate the cross-border flow of credit and to lower the cost of credit through harmonisation of rules that govern assignments which will lead to greater predictability and certainty in the assignment of receivables contracts. This article deals only with the assignment of future receivables. In this connection, formal validity of assignments and the assignment of future receivables under Turkish law and the UNCITRAL Convention is discussed. In that context certain observations and suggestions are made as to the feasibility and usefulness of ratification of the UNCITRAL Convention.

Citation

Akseli, O. (2007). Turkish law and the UNCITRAL’s work on the assignment of receivables with a special reference to the assignment of future receivables. Law and Financial Markets Review, 1(1), 45-54

• Journal Article Type: Article
• Publication Date: Jan 1, 2007
• Deposit Date: Sep 14, 2011
• Publicly Available Date: Jan 16, 2015
• Journal: Law and Financial Markets Review
• Print ISSN: 1752-1440
• Electronic ISSN: 1752-1459
• Publisher: Taylor and Francis Group
• Peer Reviewed: Peer Reviewed
• Volume: 1
• Issue: 1
• Pages: 45-54
• Public URL: https://durham-repository.worktribe.com/output/1536929
• Publisher URL: http://www.ingentaconnect.com/content/hart/lfmr/2007/00000001/00000001/art00008