Toward Facilitating Cross-Border Secured Financing and Securitization: An Analysis of the United Nations Convention on the Assignment of Receivables in International Trade

The United Nations Convention on the Assignment of Receivables in International Trade was recently adopted and is now open for signature. The Convention promulgates substantive and choice of law rules that will, if the Convention becomes effective in a sufficient number of countries, significantly improve the feasibility of cross-border transactions involving the assignment of receivables. The Convention will achieve this by reducing or eliminating obstacles to efficient commercial practices and by providing greater certainty on many issues. The authors explain the Convention's provisions and discuss relevant provisions of Revised U. C. C. Article 9 to facilitate comparison and to assist counsel in understanding how the Convention might affect transactions having a U. S. connection.