text: paydateeithertothetransferor, withwhomthebankmay beconsidered to havenolegalrelationship, ortothetransferee. Itmay bethought thatthe transferee bank'sobligation tothetransferee astowhenfundsshouldbe made available arisesoutoftherelationship between themandnotoutofthe instructions originally emanating fromthetransferor. Inanycase,itwould seemthatthetransferee bankshouldnotbeobligated bythespecification of apaydateifithasnotreceived boththefundstransfer instruction and settlement satisfactory toitinsufficient time,unlessithasundertaken a morestringent obligation insomeappropriate form.• •• •A/CN.9/266/Add.l English Page23 86.Oncethetransferee bankinacredittransfer hasreceived boththe credittransfer instruction andsettlement, thefundsshouldnormally be available tothetransferee promptly sincethetransferee bankrunsnofurther creditrisk.However, ifthecredittransfer instruction andsettlement arrivebeforethepaydate,itisacomnlonpractice incommon lawcountries forthetransferee banktodelayentryofthecreditandavailability ofthe fundsuntilthepaydate. 87.Rulesonavailability offundsindebittransfers mustdifferentiate between debittransfer instructions, suchas manybillsofexchange, forwhich thetransferee bankwillgivecreditonlyafterithasreceived notification ofhonour andthefundshavebeenremitted toit,anddebittransfer instructions forwhichprovisional settlement isgivenbetween thebanksand notification isgivenonlyincaseofdishonour. Transferees ofthefirst typeofdebittransfer instruction knowthatthefundswillnotbeavailable beforetheirbankreceives noticeofhonourandtheremittance offunds. In thesecondtypeofdebittransfer instruction, whichrepresents thevastbulk ofallpaper-based andelectronic debittransfers, appropriate ruleson availability aremoredifficult toformulate. Theinstructions arehandled in bulkthroughout thefundstransfer process. Theapplicable rules,which shouldtakeintoaccount suchmatters astheperiodoftimebeforethebanks receive settlement, theperiodoftimebeforethedebittransfer instructions shouldnormally behonoured andtheperiodoftimebeforeinformation that therehasbeendishonour shouldnormally bereceived bythetransferee bank, canbebasedonlyonaverages forthetypeofinstruction inquestion andthe experience ofthoseusingthesystem. 88.Inmostbanking systems settlement fordebittransfer instructions of thissecondtypeismade by provisional debits andcredits through appropriate inter-bank accounts. Thesettlement may be immediate oritmay bedelayed for aspecified periodoftimebutthedatewhenitisavailable tothebankis alwayspredictable foreachbatchofdebittransfer instructions ofasimilar type. 89.Forpaper-based debittransfers theleastpredictable element isthe periodoftimebeforeinformation thattherehasbeendishonour isreceived by thetransferee bank.Insomecountries atransferor bankmayhavean indefinite periodoftimeafterreceipt ofadebittransfer instruction in whichtodishonour it.Wheretheinstruction itselfmustbereturned through thesameclearing channels through whichitwaspresented, insomecountries theperiodoftimeforittobereturned tothetransferee bankcan beseveral timestheperiodoftimenecessary forittobepresented. Sincedelaying availability ofthefundsbecause ofthepossibility thattheinstruction may bedishonoured maydelayavailability foranexcessive periodforthevast majority ofinstructions thatarehonoured, actions toreducethisperiodof timemay bedesirable. Guarantee ofhonourbythetransferor bankeliminates thepossibility ofdishonour. Che_quetrunca_ti()tl~UJ:L ~tE:lctronic presenl:lTlen_t wouldservetoreducetheperiod-of -time-forpresentment. in-inany-counfrie-s. Theperiodoftimeafterpresentment duringwhichatransferor bankcould dishonour aninstruction forinsufficient fundscouldbestrictly limited. A noticeofdishonour couldbesentbymailorbytelecommunications directly to thetransferee (depositary) bank,evenifitwasnecessary toreturnthedebit transfer instruction itselfthrou&h theclearing channel.A/CN.9/266/Add.l English Page24 90.Electronic debittransfers present somewhat different problems for estimating theperiodoftimebeforeinformation thattherehasbeendishonour willbereceived bythetransferee bank.Ingeneral. asindicated in paragraph 88,electronic presentment ofdebittransfer instructions would servetoreducethetimeforpresentment. Furthermore. thesystemcanbe designed insuchamanner astofacilitate thepromptreturnofdishonoured instructions. However. when an electronic debittransfer arisesoutofcheque truncation orpursuant toastanding authorization todebitwherethe authorization islodgedwiththetransferee orwiththetransferee bank.the
analysis: The text appears to be discussing the rules and regulations surrounding international bank transfers, specifically in the context of credit and debit transfers. It seems to be focusing on the technical aspects of these transactions, such as the timing of settlement and the handling of dishonoured instructions. The language used is formal and technical, suggesting that the text is intended for an audience with a background in banking or finance.