FCI GENERAL RULES FOR INTERNATIONAL FACTORING
(Printed July 2013)
TABLE OF CONTENTS
SECTION I GENERAL PROVISIONS
Article 1 Factoring contracts and receivables
Article 2 Parties taking part in two-factor international factoring
Article 3 Receivables included
Article 4 Common language
Article 5 Time limits
Article 6 Writing
足球歌曲Article 7 Deviating agreements
Article 8 Numbering system
Article 9 Commission/Remuneration WAN口未插网线
Article 10 Settlement of Disagreements between Export Factor and Import Factor
Article 11 Good faith and mutual assistance
SECTION II ASSIGNMENT OF RECEIVABLES
Article 12 Assignment
Article 13 Validity of assignment
Article 14 Documentation relating to receivables
Article 15 Reassignment of receivables
SECTION III CREDIT RISK
Article 16 Definition of credit risk
Article 17 Approvals and requests for approvals
Article 18 Reduction or cancellation
Article 19 Obligation of Export Factor to assign
SECTION IV COLLECTION OF RECEIVABLES
Article 20 Rights of the Import Factor
Article 21 Collection
Article 22 Unapproved receivables
SECTION V TRANSFER OF FUNDS
Article 23 Transfer of payments
Article 24 Payment under Approval (PUA for short)
Article 25 Prohibitions against assignments
Article 26 Late payments
SECTION VI DISPUTES
Article 27 Disputes
SECTION VII REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS
Article 28 Reprentations, warranties and undertakings
SECTION VIII MISCELLANEOUS
Article 29 Communication and electronic data interchange (EDI)
Article 30 Accounts and reports
Article 31 Indemnification
Article 32 Breaches of provisions of the Rules
SECTION I General provisions
Article 1 Factoring contracts and receivables
A factoring contract means a contract pursuant to which a supplier may or will assign accounts
receivable (referred to in the Rules as “receivables” which expression, where the context allows,
also includes parts of receivables) to a factor, whether or not for the purpo of finance, for at least
one of the following functions:
- Receivables ledgering
- Collection of receivables
- Protection against bad debts
Article 2 Parties taking part in two-factor international factoring
The parties taking part in two-factor international factoring transactions are:
(i) the supplier (also commonly referred to as client or ller),
the party who invoices for the supply of goods or the rendering of rvices;
(ii) the debtor (also commonly referred to as buyer or customer),
the party who is liable for payment of the receivables from the supply of goods or rendering
of rvices;
(iii) The Export Factor,
the party to which the supplier assigns his receivables in accordance with the factoring
contract;
(iv) the Import Factor,
the pa
rty to which the receivables are assigned by the Export Factor in accordance with
the Rules.
Article 3 Receivables included
The Rules shall cover only receivables arising from sales on credit terms of goods and/or rvices
provided by any supplier who has an agreement with an Export Factor to or for debtors located in
any country in which an Import Factor provides factoring rvices. Excluded are sales bad on
letters of credit (other than standby letters of credit), or cash against documents or any kind of sales
for cash.
Article 4 Common language
The language for communication between Import Factor and Export Factor is English. When
information in another language is provided an English translation must be attached.
Article 5 Time limits
Except as otherwi specified the time limits t forth in the Rules shall be understood as calendar
days. Where a time limit expires on a non-working day or any declared public holiday of the
Export Factor or the Import Factor, the period of time in question is extended until the first
following working day of the factor concerned.
Article 6 Writing
“Writing” means any method by which a communication may be recorded in a permanent form so
that it may be re-produced and ud at any time after its creation. Where a writing is to be signed,
that requirement is met if, by agreement between the parties to the writing, the writing identifies the
originator of the writing and indicates his approval of the communication contained in the writing.
(N.B.: Article 6 amended June 2006)
Article 7 Deviating agreements
An agreement in writing made between an Export Factor and an Import Factor (and signed by both
of them), which conflicts with, differs from or extends beyond the terms of the Rules, shall take
晋悼公precedence over and superde any other or contrary condition, stipulation or provision in the
Rules relating to the subject matter of that agreement but in all other respects shall be subject to and
dealt with as part of the Rules.
(N.B.: Article 7 amended June 2004.)
Article 8 Numbering system
In order to identify exactly all suppliers, debtors, Import Factors and Export Factors, an appropriate
numbering system must be agreed upon between Export Factor and Import Factor.
Article 9 Commission / Remuneration
(i) The Import Factor shall be entitled to commissions and/or charges for his rvices on the
basis of the structure and terms of payment as promulgated by the FCI Council from time to
time.
(ii) The agreed commissions and/or charges must be paid in accordance with tho terms of
payment in the agreed currencies. A party delaying payment shall incur interest and the
equivalent of any exchange loss resulting from the delay in accordance with Article 26.
(iii) In ca of a reassignment of a receivable the Import Factor has nevertheless the right to the
commission or charges.
Article 10 Settlement of disagreements between Export Factor and Import Factor
(i) All disagreements arising between an Export Factor and an Import Factor in connection with
any international factoring transactions shall be ttled under the Rules of Arbitration
provided that both are members of FCI at the time of the inception of the transaction.
(ii) Furthermore any such disagreement may be so ttled if only one of the parties is a member
of FCI at the time of request for arbitration provided that the other party accepts or has
accepted such arbitration.
(iii) The award shall be final and binding.
Article 11 Good faith and mutual assistance
Under the Rules all duties shall be performed and all rights exercid in good faith. Each of the
Export Factor and Import Factor shall act in every way to help the other’s interest and each of them
undertakes to the best of his ability to assist the other at all times in obtaining any document that
may assist the other to carry out his duties and/or to protect his interests. Each of the Import Factor
and the Export Factor undertakes that each will inform the other immediately of any fact or matter
which comes to his attention and which may adverly affect the collection of any receivable or the
creditworthiness of any debtor.
SECTION II Assignment of receivables
Article 12 Assignment
(i) The assignment of a receivable implies and constitutes the transfer of all rights and interest
in and title to such receivable by any means. For the purpo of this definition the granting
of a curity right over a receivable is deemed to be its transfer
(ii) By reason of the assignment to the Import Factor of full ownership of each receivable, the
Import Factor shall have the right of bringing suit and otherwi enforcing collection either
in his own name or jointly with that of the Export Factor and/or that of the supplier and the
right to endor debtor’s remittances for the collection in the Export Factor’s name or in the
name of such supplier and the Import Factor shall have the benefit of all rights of lien,
邓丽君祖籍stoppage in transit and all other rights of the unpaid supplier to goods which may be rejected
or returned by debtors.
(iii) All assignments of receivables must be in writing.
(N.B.: New Paragraph (ii) added, previous (ii) becomes (iii) June 2009.)
Article 13 Validity of assignment 量子计算机原理
(i) The Import Factor is obliged, as regards the law of the debtor’s country, to inform the
Export Factor of:
(a) the wording and formalities of the notice of assignment; and
(b) any elements in an assignment that are necessary to safeguard the Export Factor
against claims of third parties.
The Import Factor warrants the effectiveness of his advice.
(ii) The Export Factor, whilst relying on the Import Factor’s advice under paragraph (i) of this
Articl
e as regards the law of the debtor’s country, shall be responsible for the effectiveness
of the assignment to him by the supplier and of his assignment to the Import Factor
including their effectiveness against the claims of third parties and in the insolvency of the
supplier.
(iii) If the Export Factor requests a particular assignment, enforceable against third parties, the
Import Factor is obliged to act accordingly as far as he is able to do so in accordance with
the applicable law, at the expen of the Export Factor.
(iv) Whenever the assignment of a receivable needs special documentation or a confirmation in
writing in order to be valid and enforceable, at the request of the Import Factor the Export
Factor must provide such documentation and/or confirmation in the prescribed way.
(v) If the Export Factor shall fail to provide such documentation or confirmation in relation to
that receivable within 30 days of the receipt of the Import Factor’s request, then the Import
Factor may reassign such receivable.
(N.B.: Paragraphs (i) and (ii) amended June 2004.)
Article 14 Documentation relating to receivables
(i) The Import Factor must receive details of invoices and credit notes relating to any receivable
assigned to him without undue delay and in the ca of invoices in any event before the due
date of the receivable. For the purpo of the GRIF, the “due date” of any receivable shall
mean the date specified for payment of the receivable as stated in the contract of sale,
provided, however, that if such contract specifies payments in instalments then, unless
otherwi dictated by the contract, each instalment shall be treated as having a parate due
date.
(ii) The Import Factor may require that the original documents evidencing title, including the
negotiable shipping documents and/or insurance certificate, are forwarded through him.
(iii) At the request of the Import Factor and if then needed for the collection of a receivable the
Export Factor must promptly provide any or all of the following as proof and in any event
within the following time periods:
(a) 10 days from the receipt of the request, an exact copy of the invoice issued to the
debtor;
(b) 30 days from the receipt of that request:
(1) evidence of shipment;
(2) evidence of fulfilment of the contract of sale and/or rvices where
applicable;
(3) any other documents which have been requested before shipment.
(iv) If the Export Factor:
(a) does not provide the documents referred to in Article 14 (iii); or
(b) fails to provide a reason for that delay and a request for further time, both acceptable
to the Import Factor;
within the prescribed time limits, then the Import Factor shall be entitled to reassign the 形容花香的句子
relevant receivable.
(v) The time limit for the Import Factor to be entitled to request the documents from the
Export Factor shall be 270 days after
due date of the receivable.
(N.B.: Paragraph (iv) added June 2004 - previous (iv) moved to Paragraph (v); Paragraph (i) amended June 2005, June 2006 and June 2010.) 孔雀东南飞的故事简介
Article 15 Reassignment of receivables
(i) Any reassignment of a receivable under Article 13 (v) or Article 14 (iv) must be made by
the Import Factor no later than the 60th day after his first request for the relevant documents,
or, if later, the 30th day after the end of any extended time granted by the Import Factor
under Article 14 (iv).
(ii) In the event of any reassignment of a receivable permitted to the Import Factor under this
article or under paragraph (vii) of Article 27, except as provided in paragraph (iv) of this
Article, the Import Factor shall be relieved of all obligations in respect of the reassigned
盐源玛瑙receivable and may recover from the Export Factor any amount paid by the Import Factor in
respect of it.
(iii) Every such reassignment must be in writing.
(iv) If any payment shall be received by the Import Factor from the debtor in respect of any
receivable so reassigned before notice of that reassignment shall have been received by the
debtor then the Import Factor shall hold that payment for the benefit of, and remit it to, the
Export Factor promptly.
(N.B.: Paragraph (i) amended June 2004 and again September 2008. In June 2010 Paragraph (ii) amended and Paragraph (iv) added)
SECTION III Credit Risk
Article 16 Definition of credit risk
(i) The credit risk is the risk that the debtor will fail to pay a receivable in full within 90 days of
its due date otherwi than by reason of a dispute.
(ii) The assumption by the Import Factor of the credit risk on receivables assigned to him is
conditional upon his written approval covering such receivables.
Article 17 Approvals and requests for approvals
(i) Requests of the Export Factor to the Import Factor for the assumption of the credit risk,
which may be for the approval of individual orders or of credit lines, must be in writing and
must contain all the necessary information to enable the Import Factor to apprai the credit
risk and the normal payments terms.
(ii) If the Import Factor cannot confirm the exact identification of the debtor as submitted to him
he may amend the details in his reply. Any approval shall apply only to the exact identity
of the debtor given by the Import Factor in that approval
(iii) The Import Factor must, without delay and, in any event, not later than 10 days from receipt
of the request, advi the Export Factor of his decision in writing. If, within the said period,
the Import Factor cannot make a decision he must, at the earliest, and before the expiry of
the period so advi the Export Factor.
(iv) The approval shall apply up to the amount approved to the following receivables owed by
the debtor:
(a) tho on the Import Factor’s records on the date of ap
proval;
(b) tho arising from shipments made up to 30 days before the date of request for
approval;
and shall be conditional in each ca, upon the receipt by the Import Factor of the
invoice details and the documents as stipulated in Article 14.
(v) (a) Approval in full or in part of an individual order binds the Import Factor to assume
the approved credit risk provided that the shipment of the goods is made not later
than the date of shipment, if any, stated in the request for the assumption of credit
risk or any earlier expiry date indicated by the Import Factor in the approval.
(b) The approval of a credit line binds the Import Factor to assume credit risk on tho
receivables up to the approved amount for shipments made before cancellation or
expiry date of the line.
(c) The word “goods” includes “rvices” and the expression “shipments made”
includes “rvices performed”.
(d) Shipment in relation to goods occurs when they are placed in transit to the debtor or
his designee, whether by common carrier or the debtor’s or supplier’s own transport
and in relation to rvices when they are completed.
(vi) A credit line is a revolving approval of receivables on a debtor’s account with one supplier up to the
amount of the credit line. Revolving means that, while the credit line remains in force, receivables
in excess of the line will succeed amounts within the line which are paid by the debtor or the Import
Factor or credited to the debtor. The succession of such receivables shall take place in the order in
which they are due for payment and shall be limited at any time to the amount then so paid or
credited. Where 2 or more receivables are due for payment on the same date then their succession
shall take place in accordance with the order of their respective invoice numbers.
(vii) All approvals are given on the basis that each account receivable is in conformity with the terms of
payment (with a permissible occasional variation of 100% or 45 days whichever period is shorter)
contained in the pertinent information upon which such approval was granted. However, no such
variation, which extends the credit beyond any credit period specified as a maximum by the Import
Factor in the approval, shall be permitted.
(viii) The approval shall be given in the same currency as the request. However, the credit line
covers receivables reprented by invoices expresd not only in that currency, but also in
other currencies; but in all cas the risk to the Import Factor shall not at any time exceed
the amount of the original approval.
(ix) There shall be only one credit line for each supplier on each debtor and any new credit line
shall cancel and replace all previous credit lines for the same supplier on the same debtor in
whatever currency denominated.
(x) If it is known to the Import Factor that it is the practice of the debtor to prohib
