UNIDROIT MODEL LAW ON FACTORING

MODEL LAW ON FACTORING

In accordance with the decision taken by the UNIDROIT Governing Council at its 103rd session (Rome, May 2024, C.D. 103 Misc. 2, para 13), a revised version of the UNIDROIT Model Law on Factoring (MLF) has now been published. The revision to the MLF addresses technical errors identified in the instrument’s transition rules (for more information, see document C.D. (103) 9.1 bis).

The UNIDROIT Model Law on Factoring (MLF) was adopted by the UNIDROIT Governing Council at its 102nd session (Rome, 10-12 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. For States that have undertaken prior secured transactions reforms, the MLF provides rules that could further strengthen their legal framework and encourage factoring, the assignment of receivables, and trade finance.

 

The UNIDROIT Model Law on Factoring is available in two official languages: English and French. Several unofficial translations of the instrument are also being developed.

 

ENGLISH VERSION

VERSION FRANÇAISE