Payment Under Reserve

Monday, September 1st, 2014

A forfaiter may agree to purchase a transaction even before examining the relevant documentation. In the event that such conditions to ensure the purchase of a payment obligation is a legal, valid, binding and enforceable obligation of the relevant obligor are not met then the buyer has the right to rescind the purchase. It is important that such points of reserve are specified in the relevant confirmation together with a date when such reserve items have to be delivered. Article 12 of the URF deals with payments under reserve.