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- Title
The law applicable to the third-party effects of an assignment of receivables: whither the EU?
- Authors
Walsh, Catherine
- Abstract
More than a decade has passed since the European Commission first proposed application of the law of the assignor's location to the third-party effects and priority of an assignment of claims in line with the solution adopted in the UN Assignment Convention. Although that solution ultimately did not find its way into the Rome I Regulation, the matter is now back on the EU drafting table. A proposal from the Commission for a new EU legislative instrument that would designate the law applicable to the third-party effects of cross-border transactions in both claims and securities is expected in Spring 2018. While targeted exceptions for particular types of claims like funds deposited to a bank account may be warranted, this article argues that the assignor location rule remains the optimal general solution compared to the other two possible approaches currently under debate. It is the only solution that ensures transparency of the applicable law to the third parties whose rights are governed by the designated law while also accommodating diversity in underlying substantive law regimes and diversity in the practical needs and demands of different market actors.
- Subjects
THIRD parties (Law); LEGAL claims; EUROPEAN Commission
- Publication
Uniform Law Review, 2017, Vol 22, Issue 4, p781
- ISSN
1124-3694
- Publication type
Article
- DOI
10.1093/ulr/unx050