U.S. GOVERNMENT PUBLISHING OFFICE

WASHINGTON : 

1 

59–118 

" ! SENATE 

114TH CONGRESS

2d Session 

TREATY DOC. 

2016

114–7 

U.N. CONVENTION ON THE ASSIGNMENT OF 

RECEIVABLES IN INTERNATIONAL TRADE 

MESSAGE 

FROM

THE PRESIDENT OF THE UNITED STATES 

TRANSMITTING

THE UNITED NATIONS CONVENTION ON THE ASSIGNMENT OF RECEIVABLES IN INTERNATIONAL TRADE, DONE AT NEW YORK ON 

DECEMBER 12, 2001, AND SIGNED BY THE UNITED STATES ON 

DECEMBER 30, 2003 

FEBRUARY 10, 2016.—Treaty was read the first time, and together with 

the accompanying papers, referred to the Committee on Foreign Relations and ordered to be printed for the use of the Senate 


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LETTER OF TRANSMITTAL 

THE WHITE HOUSE, February 10, 2016. 

To the Senate of the United States: 

With a view to receiving the advice and consent of the Senate to 

ratification, subject to certain declarations and understandings set 

forth in the enclosed report, I transmit herewith the United Nations Convention on the Assignment of Receivables in International 

Trade, done at New York on December 12, 2001, and signed by the 

United States on December 30, 2003. The report of the Secretary 

of State, which includes an overview of the proposed Convention, 

is enclosed for the information of the Senate. 

The Convention sets forth modern uniform rules governing the 

assignment of receivables for use in international financing transactions. In particular, the Convention facilitates the use of crossborder receivables financing by: (a) recognizing the legal effectiveness of a wide variety of modern receivables financing practices; (b) 

overriding certain contractual obstacles to receivables financing; 

and (c) providing clear, uniform conflict-of-laws rules to determine 

which country’s domestic law governs priority as between the assignee of a receivable and competing claimants. 

As a global leader in receivables financing, the United States actively participated in the negotiation of this Convention at the 

United Nations Commission on International Trade Law with the 

support of U.S. business interests. Drawing on laws and best practices prevalent in the United States and other countries where receivables financing flourishes, the Convention would promote the 

availability of capital and credit at more affordable rates and thus 

facilitate the development of international commerce. Widespread 

ratification of the Convention would help U.S. companies, especially small- and medium-sized enterprises, obtain much-needed 

working capital financing from U.S. banks and other lenders to export goods, and thereby help create more jobs in the United States. 

The rules set forth in the Convention do not differ in any significant respect from those contained in existing U.S. law. In particular, in virtually all cases application of the Convention will 

produce the same results as those under the Uniform Commercial 

Code Article 9, which all States and the District of Columbia, Puerto Rico, and the Virgin Islands have enacted. 

I recommend, therefore, that the Senate give early and favorable 

consideration to the Convention and give its advice and consent to 

ratification, subject to certain declarations and undertakings set 

forth in the enclosed report. 

BARACK OBAMA. 


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LETTER OF SUBMITTAL 

DEPARTMENT OF STATE, Washington, April 14, 2015. 

The PRESIDENT, 

The White House. 

THE PRESIDENT: I have the honor to submit to you, with a view 

to its transmittal to the Senate for advice and consent to ratification, the United Nations Convention on the Assignment of Receivables in International Trade, which was adopted at New York on 

December 12, 2001, and signed by the United States on December 

30, 2003. Also enclosed is an Overview of the Convention, which includes a detailed article-by-article analysis. 

The Convention sets forth modern uniform rules relating to the 

assignment of commercial receivables for use in international financing transactions. Receivables are a business’s right to future 

payment from its customers for goods or services provided. When 

businesses need cash on hand, they may sell their accounts receivable or use them as collateral to obtain cash. These so-called ‘‘assignments’’ of receivables are common in the United States and are 

governed by clear and predictable rules under uniform state law. 

When these transactions cross international borders, however, U.S. 

rules may not apply, and many countries’ laws are not well-suited 

to modern receivables financing practices. The result can be both 

uncertainty as to which rules apply to cross-border transactions 

and, depending on which rules apply, the application of unhelpful 

rules. 

The Convention addresses both of these issues. First, it provides 

certain uniform substantive rules that enable receivables financing 

practices that have proven to be beneficial in the United States and 

other countries. For example, the Convention ensures that an assignment of trade receivables is effective notwithstanding certain 

contractual provisions that would prevent the assignment of receivables. Second, the Convention provides clear conflict-of-laws rules 

as to a major issue in cross-border receivables financing, that is, 

which country’s law governs the priority of an assignee’s claim to 

receivables as against competing claimants. 

As a global leader in receivables financing, the United States 

participated actively in the negotiation of this Convention. The 

rules set forth in the Convention do not differ in any significant respect from those contained in existing U.S. law. In particular, in 

virtually all cases, application of the Convention will produce the 

same results as those under the Uniform Commercial Code (UCC) 

Article 9, which all U.S. states and the District of Columbia, Puerto 

Rico, and the Virgin Islands have enacted. 


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Widespread ratification of the Convention should help U.S. companies obtain access to working capital financing and increase their 

exports, thereby creating additional U.S. jobs. As of March 2015, 

four countries, including the United States, have signed the Convention but only one country has acceded to it. 

It is hoped that U.S. ratification of this Convention will encourage other countries to become party to it. 

The Department consulted extensively with members of the Uniform Law Commission (ULC) and the American Law Institute 

(ALI) in the development of the Convention. After the Convention 

was concluded, an extensive review was conducted under ULC auspices, including knowledgeable members of the ALI and other associations, to examine the consistency of the Convention with U.S. 

law and practice and the best means of domestic implementation 

of the Convention. These views have been helpful to the Department in formulating the analysis and recommendations contained 

in the enclosed overview of the Convention. 

The Convention would be self-executing and there would not be 

a need for the enactment of implementing legislation. 

I recommend, therefore, that you transmit the Convention to the 

Senate for advice and consent to ratification. 

Respectfully submitted. 

JOHN F. KERRY. 

Enclosures: As stated. 


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