| Abstract: | Breaking new ground, the UN Convention on the Assignment of Receivables in International Trade refers all priority conflicts with respect to receivables to the law of single and easily determinable jurisdiction, and one that is most likely going to be the insolvency jurisdiction, namely to the law of the assignor's place of business or, in the case of places of business in more than one State, the assignor's central administration. In the case of an insolvency proceeding in another jurisdiction, the mandatory rules of that juridiction displace any priority rule of the law of the assignor's location only if that priority rule is manifestly contrary to the public policy of that jurisdiction. In such a case, the balance of the priority rules of the law of the assignor's location prevails over the priority rules of the insolvency jurisdiction with the exception of rules relating to preferential rights. In any case, the Convention ensures that priority rules do not interfere with basic insolvency rights, such as those relating to stays, avoidance actions and to the performance of contracts or maintenance of the estate. Copyright © 2004 John Wiley & Sons, Ltd. |
