text: intermediary bankorhasbeencredited atorthrough aclearing-house, andif thecredit cannolonger bereversed either by awithdrawal ofthefunds transfer instruction orbythesending bank'sfailure tosettle, thenthe fundstransfer may beconsidered tobelegally finalastothetransferor and transferee atthesametime,i.e.whenthetransferee bank'saccount hasbeen credited. Insuchacasethesubsequent crediting ofthetransferee's account wouldhavenoeffect onfinality ofthefundstransfer. Asomewhat similar resulthasoftenbeenreached inrespect ofpaper-based transfers wherethe sending banksettled withthetransferee bankbyenclosing withthefunds transfer instruction itsownirrevocable commitment insuchaformas a banker's chequeorbanker's payment. (c)Noticeofcredittotheaccount ofthetransferee bank 9.Theaboveconsiderations applyifthecredittransfer between thebanks isfinalwhennoticeofthecredittothetransferee bank'saccount hasbeen giventoitand,thus,thefundstransfer wouldbefinalastothetransferor andtransferee whenthenoticeisgiventothetransferee bank. (d)Transferee bankdecides toacceptcredittransfer 10.Inmanycommon lawcountries acredittransfer may become finalatthe momentthetransferee bankdecides toacceptthecredittransfer. This decision canbemanifested by anyactwhichdemonstrates thetransferee bank's intention andwillbebaseduponitsassessment ofthereliability ofthe settlement offered insupport ofthecreditbalanceitisaskedtocreate.• •• • "• •A/CN.9/266/Add.l English Page5 11.Historically thisrulehadtheadvantage thatthefundstransfer became finalattheearliest possible momentafterthetransferee bankhadreceived thecredittransfer instruction and had had theopportunity toperform the necessary verifications. As aresultitmayhavebeentheearliest pointof timeacceptable forfinality ofafundstransfer inwhichthetransferee bank received thefundstransfer instruction fromaforeign country. Therulehas thedisadvantage thatincaseofdisputeitcallsforajudicial determination whether aparticular employee ofthebankhad made a subjective judgment by a particular pointoftime,adetermination whichcanbe'made onlybythereview ofspecific factsineachcase.Therule,whichwasfirstformulated in respect ofthehonourofbillsofexchange andcheques inanearlier era,may belessapplicable tothefinality offundstransfers inaperiodof batch-processing oron-line telecommunications. (c)Entryofcredittotransferee's account 12.Inroutine batch-processed credittransfers noconscious decision to honourismade by thetransferee bankandthefirstobjective actwhichcan be reliedupontooccuristhecreditentrytothetransferee's account. Itis thatobjective actwhichisconsidered tomakethefundstransfer finalin manylegalsystems. •13.However, although theentering ofthecredittothetransferee's account isanobjective act,thepointoftimeatwhichitoccursisoftennot determinable. Whenaccount records arekeptinvisualform,theorderin whichdebits andcredits areentered isdiscernible, eventhoughtheexact timeatwhichtheyareentered maynotlaterbedeterminable. Whenindividual fundstransfer instructions arereceived overcomputer-to-computer telecommunications andarereleased forposting afterverification, thetime ofposting canbestoredintherecordofthetransaction. However, individual paper-based andelectronic fundstransfer instructions processed in batch-mode areusually nottime-stamped. Although time-stamping ofthe individual instruction istechnically feasible, itmay bequestioned whether itwouldbe adesirable requirement simplyforthepurposes ofdetermining whenthefundstransfer becamefinal. The same effective resultmightbe achieved byconsidering thefundstransfer finalwhenthebatchisintroduced intothemachine forprocessing orwhenitistakenoutofthemachine after processing, actions whicharelikelytobekeptinadata-processing log. 14.Overnight posting withanentrydateofthefollowing daymayraisea question astowhether thepost.ing ofacreditoutside normalworking hours legally takeseffectimmediately oronlyattheopening ofbusiness onthe nextbanking day.Ifthisisanissueinanylegal syst~m,itwillbecome moreacuteasbanking movestowards atwenty-four hourday,notonlyin respect ofinternational banking butalsoinrespect ofconsumer banking through thefullarrayofcustomer-activated terminals. 15.Posting withaninterest dateoneormoredaysaftertheentrydate
analysis: This text appears to be discussing the rules and procedures for international fund transfers, specifically focusing on the timing and finality of such transactions. The language used is technical and formal, suggesting that it may be related to banking or financial regulations. The text also touches on the concept of "batch-processing" and "on-line telecommunications," which are likely related to the technical aspects of modern banking.