text: transferor bankhasno means toverifytheauthenticity ofthedebittransfer instruction. Therefore, untilthetransferor hasreceived therelevant statement ofaccount activity andtheperiodoftimeforobjection to unauthorized debitshaspassed. thepossibility existsthatthetransferor willclaimthattheinstruction wasnotauthorized orthatnoauthorization to honourtheinstruction existed. Insomecountries whereonlythepassage of thestatute oflimitations orperiodofprescription cutsoffthetransferor·s rightstoobjectthatadebittohisaccount wasnotauthorized. theperiodof4t uncertainty maylastforaperiodofyears. Forthisreasonitisadviseable wherever possible fortheauthorization todebittobelodgedwiththe transferor bank. 91.Wherethetransferee iswell-known tothetransferee bankandthereis littledoubtthatthetransferee willbeabletoreimburse thetransferee bank foranydishonoured debittransfer instructions. thebankincursno substantial riskinmakingthefundsavailable atanyearlydate.Therefore. thereisusually lessdelayinavailability inrespect ofdebittransfers made pursuant toastanding authorization todebit.wheretransferees aretypically largeandfinancially secureorganizations. thanthereisinrespect ofother formsofdebittransfer. 5.Discharge oftheunderlying obligation 92.Ultimately anunderlying obligation isdischarged by means ofafunds transfer onlyifthetransferee-creditor receives irrevocable creditinhis account. However. thetimewhentheobligation isdischarged depends onthe termsofthecontract orothersourceoftheobligation. thelawgoverning the4t obligation andthefundstransfer procedure followed. 93.Inarelatively few.butusually important. contracts thetransferor is obligated tomakethefundsfreelyavailable tothetransferee by adesignated date.Insomecountries ithasbeenthepractice totreatprimary obligations ofabank.suchasabanker's chequeorbanker's payment. assatisfying such anobligation. butitisbecoming thegeneral practice touseacredit transfer withaspecified paydateorevenaspecified timeofday. 94.Ifthetimewhenthefundsmustbefreelyavailable isnotspecified in thecontract. anobligation discharged bycredittransfer isnormally discharged whenthecredittransfer becomes finalastothetransferee. Therefore. recentchanges incredittransfer procedures duetotheincreased useofelectronic techniques couldbeexpected toaffectboththeruleson discharge andtherulesonfinality. Tndeed.itappears thatinsomerecent casestherulesonfinality ofthefundstransfer havebeeninfluenced by problems whichhavefirstariseninconnection withdischarge ofthe obligation.• •A/CN.9/266/Add.l English Page25 95.SincetheoblhliHon isusually dischaeged when thecredittransfer becomesfinal, asbetween the·transferor andthetransferee itisthe transferor whorunstheriskofdelaysorerrorsinthefundstransfer process. Insomecountries, thecourtshaverelieved. transferors fromthe mos.tserious consequences ofsuchdelays byholding thatinsurance contracts orthelikecouldnotbe.terminated forlate pa~ent Whenthetransferor had takentheappropriate actions totransfer thefundsand had done so indue time. Whentheonlyconsequence tothetransferor arising of:1late pa~ent duetodelaysinthefundstransfer process islossofinterest, thelossis oftenrecoverable fromthebankresponsible. However, whentheconsequence is termination ofthecontract, bankshaveoftenbeenheldnottobeliablefor theresulting damages. 96.Wheretheunderlying obligation istobedischarged by adebittransfer, thetransferee maynottreattheobligation asbeingindefaultifhehasthe meanstostartthedebittransfer process. Therefore, theissueastowhen theunderlying obligation wasdischarged seldomarisesinthecaseofdebit transfers wherethetransferee issuesthedebittransfer instruction, suchas inthecaseofbillsofexchange drawn by thetransferee onthetransferor or onthetransferor bankordebittransfers madepursuant toastanding authorization todebit. Similarly, inthecaseofacheque, thetransferee maynottreattheobligation asbeingindefault oncehereceives possession ofthecheque. Insomecountries thereisaquestion whether thetransferor may beliabletothetransferee forinterest asaresultofremitting acheque atsuchtimethatthetransferee doesnotreceive credituntilafterthedate pa~ent wasdue.However, inallcasesofdebittransfer itisthetransferee whobearstheriskasagainst thetransferor ofdelaysorerrorsinthefunds transfer process. Although thedebittransfer instruction mustbehonoured whenpresented fortheunderlying obligation tobeirrevocably discharged, the
analysis: The text appears to be discussing financial and banking-related topics, such as the transfer of funds, authorization, and the discharge of obligations. The language used is technical and specific to the financial sector, indicating that the text is likely related to economic or financial activities. Additionally, the text mentions specific financial instruments, such as cheques and credit transfers, which further supports the conclusion that the text is related to financial or economic activities.