Debtor

China s Bad Debtor

Bankruptcies Debtor sales

Principle of debtor protection

Notification of the debtor

The Debtor Prisoner s Dilemma

Participation by debtor firms is voluntary, and requires negotiation between the debtor firm and its creditors.

Right to notify the debtor

Principle of account debtor protection

Notification of the account debtor

2. The debtor may raise against the assignee any other right of set off, provided that it was available to the debtor at the time notification of the assignment was received by the debtor.

2. The debtor may not waive defences

Discharge of the account debtor by payment

(b) The account debtor may raise against the assignee any other right of set off, provided that it was available to the account debtor at the time notification of the assignment was received by the account debtor

(b) The account debtor may not waive defences

Article 19. Protection of creditors and the debtor

In the insolvency of a non grantor debtor, the creditor is an unsecured creditor with an unsecured claim against the non grantor debtor.

1. Until the debtor receives notification of the assignment, the debtor is entitled to be discharged by paying in accordance with the original contract.

Where the security right at issue (which secures the debtor's obligation) is granted by the debtor, the term debtor also refers to the grantor.

Orthodoxy has always upheld the sacred rights of the creditor political necessity has frequently demanded relief for the debtor. Which side wins in any situation depends on the extent of debtor distress and the strength of the opposing creditor debtor coalitions.

In those cases where there are no unencumbered assets, or no excess value in already encumbered assets, that the debtor can offer as security or with which the debtor can satisfy an administrative expense priority claim, the debtor has limited options.

That result, it was said, could be mitigated by providing that the draft Convention would not apply to a debtor, unless that debtor was located in a Contracting State and by including in the draft Convention an adequate debtor protection system.

6. If the debtor receives notification of the assignment of a part of or an undivided interest in one or more receivables, the debtor is discharged by paying in accordance with the notification or in accordance with this article as if the debtor had not received the notification. If the debtor pays in accordance with the notification, the debtor is discharged only to the extent of the part or undivided interest paid.

Defences and rights of set off of the debtor

(e) coordination of concurrent proceedings regarding the same debtor

(a) Staying execution against the debtor apos s assets

(e) Coordination of concurrent proceedings regarding the same debtor

Defences and rights of set off of the account debtor

(b) Assets of the debtor property, rights and interests of the debtor, including rights and interests in property, whether or not in the possession of the debtor, tangible or intangible, movable or immovable, including the debtor's interests in encumbered assets or in third party owned assets

(1)A serious financial difficulty occurs to the issuer or debtor

Article 14 10 . Discharge of obligations to debtor 161 163 35

(b) Execution against the debtor apos s assets is stayed and

Protection of creditors and the debtor 72 78 17 Article 20.

The decision to seek a rescheduling rests with the debtor country.

(a) Allow the debtor a breathing space while restructuring its economy

The law governing the original contract determines the effectiveness of contractual limitations on assignment as between the assignee and the debtor, the relationship between the assignee and the debtor, the conditions under which the assignment can be invoked against the debtor and whether the debtor's obligations have been discharged.

In reply, it was observed that, for example, the names and addresses of foreign creditors would be obtainable from the debtor apos s books and correspondence and that in the case of debtor initiated insolvencies, national laws often required the debtor to produce a full list of creditors.

5. If the debtor receives notification of one or more subsequent assignments, the debtor is discharged by paying in accordance with the notification of the last of such subsequent assignments.

(t) Account debtor means a person liable for payment of a receivable.

4. Stresses the need for new financial flows to debtor developing countries

The operations might not involve less conditionality for the participating debtor countries.

Failure of the assignor to perform the original contract does not entitle the debtor to recover from the assignee a sum paid by the debtor to the assignor or the assignee.

Similarly, it was said that clarity as to the place of business of the debtor was essential for the application of the draft Convention to the rights and obligations of the debtor.

quot With the exception of matters which are settled in this Convention, the assignability of a receivable, the right of the assignee to request payment, the debtor apos s obligation to pay as instructed in the notification of the assignment, the discharge of the debtor and the debtor apos s defences are governed by the law governing the receivable to which the assignment relates of the country in which the debtor is located . quot

(4)The debtor will probably become bankrupt or carry out other financial reorganizations