raises adifferent issue. Inmanycivillawcountries oncethecreditis postedthefundstransfer isfinalandthetransferee hasanunqualified right towithdraw thefunds. However, hedoesnotearninterest onthecredituntil theinterest dateand,ifthefundsarewithdrawn beforetheinterest date,he wouldpay afeeequivalent totheprevailing rateofinterest onloansfrom thedateofwithdrawal totheinterest date. Th~refore, inthesecountries, transferee bankswhichreceive acredittransfer beforethepaydatei.e.theA/CN.9/266/Add.1 English rage6 datespecified bythetransferor onwhichthefundsaretobefreelyavailable tothetransferee. mayenterthecreditimmediately withaninterest date whichisthesame as thepaydate. 16.Incommonlawcountries adifferent resultislikely. Wheretransfers show afuturepaydate.itiscommonpractice todelayentryofthecreditto thetransferee's accountuntilthedayindicated. although thetransaction may beentered intothetransferee bank'scomputer atanearlier timeforentryto theaccount onthepaydate.Therefore. iffinality isdependent uponentry ofthecredittothetransferee's account. thefundstransfer wouldnotbecome finaluntilthepaydateandthefundswouldnotbeavailable untilthen. (f)Entryofcreditsubject toreversal 17.Insomecountries itisanacceptable banking procedure forbanksto enterdebits andcredits totheaccounts oftheircustomers subject to reversal foraperiodoftime.Although theprocedure isfollowed inseveral countries. itsmostwell-known useinrespect ofinternational fundstransfers ... involves credittransfers madethrough CHIPSandsimilar on-line electronic clearing-houses intheunitedStateswithend-of-the-day (ornextday)net settlement. SincetheCHIPSrulesanticipate thepossibility thatoneormore banksmayfailtosettlefortheirnetdebitbalance. manybanksparticipating inCHIPSprovisionally credittheircustomers' accounts withincoming credit transfers asthosetransfers arereceived overtheCHIPSsystem. However. the cr~dits aresubject toreversal ifthereshouldbe afailure tosettle. The provisional credits andthecredittransfers becomeirrevocable when settlement isfinal. Inothertypesoferedittransfers wherereversal may be allowed forawiderrangeofreasons. aprovisional credittothetransferee's account may become irreversible whenthetimehaspassedduringwhichthe systemallowsreversal ofthecredit. Although irreversibility andfinality arenotsynonymous terms.inthesecasesthefundstransfer isusually considered tobecomefinalwhenthecreditentrybecomes irreversible. (g)Noticetothetransferee 18.Inanumberoflegalsystems acredittransfer isdeemedtobefinalwhen anoticeofthecreditisgiventothetransferee. Thisisseenasthemoment ~ whentheinformation thatthetransferee's account hasbeencredited passes outofthecontrol ofthebank. 19.Theruleisbasedon apractice ofsending anoticeofthecreditatthe endofthedayoronthefollowing dayforeverycreditentered toa customer's account. However. ifcustomers canenquire byon-line customer-activated terminals astotheiraccount balance andrecentaccount activity. application ofthisrulemightleadtotheconclusion thatthe creditwasfinalassoonasitwaspostedtotheaccount. Inthiscase.there wouldnolongerbeaneedtosendanoticeofthecredittothetransferee for thepurpose ofmakingthefundstransfer final. (h)Payment incash 20.\Vhenthetransferee bankistohandovercashtothetransferee atsucha placeashisdomicile orplaceofbusiness. asisthepractice inmany consumer oriented credittransfer networks andespecially thoseoperated by•• •A/CN.9/266/Add.l English Page7 postalservices, thefundstransfer may befinaluponthehanding overofthe cash.Therefore, itwouldseemthatthefundstransfer wouldnotbefinalif thetransferee refused totakethecash.The same resultmayoccurwhenthe transferee bankistoholdthefundsfordelivery incashorequivalent tothe transferee uponidentification. 2.Debittransfers 21.Considering thatdebittransfers becomefinalwhenthetransferor bank takestherelevant action, thesamegenp.ral setofpossible pointsoftimeat whichafundstransfer becomes finalexistsinrespect ofdebittransfers as existsinrespect ofcredittransfers. Thatis,thefundstransfer may become finalwhenthetransferor bankdecides tohonourthedebittransfer instruction, whenthedebit.tothetransferor's account isentered, when a noticeofthedebitisgivenorwhen,suhsequent totheposting ofthedebit totheaccount, thetimeallowed forreversal ofthedebithaspassed. 22.Thereis,however, amajorqualification tothegeneral equivalence between thepointsoftimewhenadebittransfer andacredittransfer may becomefinal. Adebittransfer isnotfinalas aresultofthecrediting of thetransferee's account. Onthecontrary, ifthetransferee's account is credited whenthedebittransfer instruction isfirstprocessed bythe
**Analysis**
The text appears to be discussing the timing and finality of credit and debit transfers in a banking context. It mentions specific practices and procedures in various countries, such as the use of CHIPS and other electronic clearing-houses. The text does not seem to be related to economic development, natural resources, agriculture, forestry, fishing, health, education, employment, humanitarian aid, or culture. It is more focused on the technical aspects of banking and finance, which suggests that it might be related to industry or international trade.

**Category**
Industry, International Trade