SOME ISSUES OF LEGAL REGULATION OF FACTORING CONTRACT RELATIONS IN FOREIGN LEGAL SYSTEMS

Abstract

The article examines selected issues of the legal regulation of factoring contract relations in foreign jurisdictions. It is emphasized that the study of foreign experience makes it possible to identify universal legal approaches that ensure the effectiveness of factoring as a financial instrument, as well as to assess national particularities that may be taken into account when improving domestic legislation. It is established that the international regulation of factoring relations was for many years based on the 1988 UNIDROIT Convention on International Factoring; however, its limited potential led to the development of the UNIDROIT Model Law on Factoring in 2023. The latter is regarded as a «soft law» instrument designed to provide guidance for states in shaping or modernizing national legal frameworks. It is noted that in the United States factoring relations are governed by Article 9 of the Uniform Commercial Code, as well as by state laws (New York, California, Utah, etc.), which impose strict disclosure requirements on providers of financial services related to factoring. In Belgium, the regulatory framework is based on the updated Civil Code, which establishes the principle of transferability of claims, the possibility of assigning future receivables, the automatic transfer of accessory rights, and the obligation to notify the debtor. In Germany, factoring relations are governed by the Civil Code provisions on assignment, complemented by public-law rules of the Banking Act requiring BaFin authorization. In France, two alternative models operate: assignment of debt and subrogation, enshrined respectively in the Civil Code and the Monetary and Financial Code, supported by strict formal requirements. It is concluded that national mechanisms of legal regulation of factoring remain heterogeneous; however, common tendencies across most legal systems include reliance on the classical civil law concept of assignment, the combination of private-law instruments with financial supervision mechanisms, and the gradual harmonization of approaches in line with current financial market needs.