eURF Call for Applications – Reminder

As mentioned during the 2021 conference, and further to our email circulated on Nov 23^rd, we take the opportunity to remind all our members that ITFA is in the process of setting up a Working Group, aimed at creating an e-version of the URF800 (eURF), in the same way as the eUCP and eURC, which will assist users handling electronic negotiable instruments.

ITFA has contributed to the consultation and reform process, see here for the Law Commission’s consultation paper Electronic-trade-documents-CP.pdf/ The consultation paper makes reference to our DNI Initiative which provides a technology and practical layer to implement digital negotiable instruments. See here for general information – ITFA Digital Negotiable Instruments (DNI) Initiative and here for our Manual of Digital Negotiable Instruments. ITFA has also supported the adoption of the United Nations Model Law on Electronic Transferable Records (MLETR) now being implemented in an increasing number of countries and already in force in Singapore.

ITFA’s origins are in the forfaiting markets and we believe that a new era of digital forfaiting can be ushered in following the changes in law and the new technology available freed from the constraints of paper.

Embracing these positive developments, it is also necessary to develop a contractual framework for the commercialisation of these instruments.

Rules already exist in the form of the Uniform Rules of Forfaiting (URF800), published by ITFA, the ICC and endorsed by UNCITRAL, which can already support electronic documentation. The URF provides a set of rules providing standardised terms and conditions for both origination and distribution, harmonising best practises and mitigating the risk of disputes. They offer clear timelines with consequences for non-performance and  regulate the nature and extent of the liabilities of parties amongst many other things.

Please click here to access the rules.

Our intention is to create a specific version of the rules that will leverage the existing framework and truly support reflect the end-to-end process concerning fully electronic transactions and instruments. Although the use of negotiable instruments has diminished over the years, due to impractical processing burdens (which can now be largely removed), the strength of these instruments, which are irrevocable, unconditional and transferable, abstract from the underlying transactions, is still of critical value and has attracted the interest of both new investors and fintech platforms.

We hope that many of our members will engage in this important development and should you be interested to join the working group, you are invited to send an email to info@itfa.org by latest 21 January 2022. Please do not hesitate to contact us if you require further clarification in relation to this announcement.