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![handle is hein.nccusl/nccpub00984 and id is 1 raw text is: Draft
March --22 2007
United Nations Convention on the Assignment
of Receivables in International Trade
Article 4. Exclusions and other limitations
2. This Convention does not apply to assignments of receivables arising under or from:
(e) The transfer of security rights in, sale, loan or holding of or agreement to repurchase securities
or other financial assets or instruments held with an intermediary;
[[Understanding: The United States understands that paragraph (2) of article 4 (with respect to
clause (e)) (i) excludes from the scope of the Convention the assignment of the assignor's rights as
against the intermediary, to the extent that the rights are receivables, with respect to the following,
when such property is held by the assignor with an intermediary: securities, other financial assets, and
instruments, (ii) does not exclude from the scope of the Convention the assignment of the following
rights, to the extent that the rights are receivables, when held by the assignor other than with an
intermediary: securities, other financial assets, and instruments, and (iii) except as described in clause
(i), does not exclude from the scope of the Convention the assignment of a receivable owing to the
assignor and arising out of the transfer by the assignor of a security, other financial asset, or an
instrument, even if the security, other financial asset, or instrument is held with an intermediary.]] [Note
to drafting group: I have left in the understanding for the moment, in case we change our collective
minds again]
[The Senate Report will explain that the Convention does not apply to the assigmnnent of a receivable
if (i) it is a security, (ii) it is a financial asset or instrument that is not a security, if the financial asset or
instrument is held with an intermediary, and (iii) it arises from the assignment of (a) a security, or (iii a
financial asset or instrument held with an intermediary. The exclusion of securities that are receivables
applies to securities (i) held with an intermediary, and (ii) not held with an intermediary.]
Article 5. Definitions and rules of interpretation
For the purposes of this Convention:
(h) A person is located in the State in which it has its place of business. If the assignor or the
assignee has a place of business in more than one State, the place of business is that place where the
central administration of the assignor or the assignee is exercised. If the debtor has a place of business in](ViewImageLocal?handle=hein.nccusl/nccpub00984&div=1&collection=&method=preview&ext=.png&size=3)