The UNIDROIT Model Law on Factoring Guide to Enactment Working Group holds its first session

Between 8 – 10 April 2024, the International Institute for the Unification of Private Law (UNIDROIT) hosted the 1st session of the Working Group responsible for the preparation of the Guide to Enactment for the UNIDROIT Model Law on Factoring.


The UNIDROIT Model Law on Factoring (MLF) was adopted by the UNIDROIT Governing Council at its 102nd session in May 2023. The MLF provides a complete, self-standing legal regime that facilitates factoring transactions. The instrument comprises of a set of black-letter law rules that is primarily aimed at States that have not yet fully implemented a modern, comprehensive secured transactions legal framework.


Following the adoption of the MLF, work has begun on the preparation of a Guide to Enactment (GtE). The purpose of the GtE is to assist States in understanding, implementing, and interpreting the provisions of the MLF.  The GtE is being developed by an expert Working Group composed of the same members that developed the Model Law on Factoring itself, under the Chairmanship of UNIDROIT Governing Council Member ad honorem Professor Henry Gabriel. Intergovernmental organisations, non-governmental organisations, private sector associations and academics with expertise in the field of factoring participate as observers in the Working Group.


The Working Group’s 1st session was attended by 36 participants (10 Working Group members, 17 observers from intergovernmental organisations, non-governmental organisations, industry representatives and academic experts, and nine members of the Secretariat). During the first session, the Working Group agreed upon the working methodology, structure and content of the GtE. The Working Group also reviewed and provided feedback on the content outlines for the different sections. The Working Group’s next session will be held in December 2024.


More information on the UNIDROIT Model Law on Factoring and the preparation of the Guide to Enactment is available on the UNIDROIT website.

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