The Working Group for the UNIDROIT Model Law on Factoring Guide to Enactment holds its second session

Between 16 – 19 December 2024, the International Institute for the Unification of Private Law (UNIDROIT) hosted the second session of the Working Group responsible for the preparation of the Guide to Enactment for the UNIDROIT Model Law on Factoring.

The UNIDROIT Model Law on Factoring (MLF) was adopted by the UNIDROIT Governing Council at its 102nd session in May 2023. The MLF provides a complete, self-standing legal regime that facilitates factoring transactions. The instrument comprises of a set of black-letter law rules that is primarily aimed at states that have not yet fully implemented a modern, comprehensive secured transactions legal framework. The purpose of the Guide to Enactment is to assist states in understanding, implementing, and interpreting the provisions of the MLF.  The Guide is being developed by an expert Working Group composed of the same members that developed the Model Law on Factoring itself, under the Chairmanship of UNIDROIT Governing Council Member ad honorem Professor Henry Gabriel. Intergovernmental organisations, non-governmental organisations, private sector associations and academics with expertise in the field of factoring participate as observers.

The Working Group’s second session was attended by 34 participants (10 Working Group members, 18 observers from intergovernmental organisations, non-governmental organisations, industry representatives and academic experts, and six members of the Secretariat). During the second session, the Working Group reviewed the first complete version of the draft Guide and provided detailed feedback on the level of detail and content of the document. The Working Group’s third and final session will be held in April 2025.

More information on the UNIDROIT Model Law on Factoring and the preparation of the Guide to Enactment is available on the UNIDROIT website.

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