nevertheless betransmitted off-line inbatches toanother bankortoan automatic clearing-house. Inthiscasethereceiving bankwouldprobably process theinstructions inbatch-mode. 4.Customer-activated terminals 38.Off-line customer-activated terminals storethetransaction dataon computer memorydevices forlaterhatch-processing. Inmostcasesthenormal rulesonfinality applicable tobatch-processed fundstransfer instructions wouldbeappropriate. However. thedispensing ofcashfromacashdispenser. whether on-line oroff-line. wouldprohahly beconsidered tobefinalatthe momentthecashwaswithdrawn. Inthiscasethedebittotheaccount ofthe customer wouldconstitute onlyanimplementing actofrecord-keeping. This wouldbeinaccordwiththerulesgoverning timeoffinality ofcheques or credittransfer instructions whicharehonoured incash. 39.Although on-line point-of-sale systems permittheimmediate entryofthe credittothemerchant's (transferee's) account anddebittothepurchaser's (transferor's) account, somepoint.·of-sale systems whichpermittheon-line verification oftheauthenticity ofthefundstransfer instruction andthe transferor's account balance delaydebiting thetransferor's account forone ormoredaystoallowthetransferor thesamedelayindebitwhichwould previously haveoccurred ifhe hadgiventhemerchant acheque. Thecreditto themerchant mayalsobedelayed foraperiodoftime.whichmay bethesame asforthedebittothetransferor. Thus.inmostlegalsystems application oftheusualruleswouldleadtotheconclusion thatthefundstransfer was notfinaluntiltherelevant entrydate.A/CN.9/266/Add.l English Page12 40.Ifonlythedebitwasdelayed, undercertain rulesonfinalit~ thefunds transfer wouldbeconsidered tohefinalifitwasacredittransfer butnot ifitwasadebittransfer. Theopposite result wouldoccurifonlythe credit wasdelayed. Determination astowhether thefundstransfer wasa debittransfer oracredittransfer mightinturndepend onwhether thefunds transfer instruction fromthepoint-of-sale terminal passedfirstthrough the purchaser's bank(credit tr~nsfer) orthrough themerchant's bank(debit transfer). However ,ifthefundstransfer instruction wenttoaswitchwhich simultaneously routedthecredittothemerchant's bankandthedebittbthe purchaser's bank,thefundstransfer couldnolonger beclassified aseither a debittransfer oracredittransfer, andthisanalytical basisfordetermining finality wouldnotbeavailable. 5.Guarantee ofhonour bytransferor bank 41.Creditcardplans,guaranteed chequeplanssuchasEbrocheque and electronic point-of-sale systems tl1ithdelayed debitnormally provide that,if therequired procedures havebeenfollowed, thetransferee (merchant) willhe credited fortheamountofthedebittransfer instruction eventhoughthe instruction mayturnouttobefraudulent. Theseprocedures include a requirement thatthetransferor properly identifies himself andmayinclude a requirement thatthetransferee (merchant) receives anauthorization fromthe transferor bank(orfromtherelevant network) beforeproceeding withthe transaction. 42.Guarantee ofhonourcreates alegalhybridinthelawoffunds transfers. Adirectresultoftheguarantee isthatthetransferor bankis irrevocably obligated underthecontractual arrangements tothetransferee and tothetransferee banktohonourthedehittransfer instruction whenitis presented. Anecessary additional element inthecontractual arrangements is thatthetransferor relinquishes anyrighthewouldotherwise haveunderthe applicable lawoffundstransfers towithdraw thedebittransfer instruction. Whereconsumer legislation protects therightofthetransferor towithdraw thedebittransfer instruction forsomeperiodoftime,thereby forthat periodoftimeprecluding thetransferor bankfromirrevocably debiting his account inrespect ofthatinstruction, thetransferor hank'sguarantee tothe transferee andtransferee bankmustnecessarily hesimilarly limited. 43.However, wherethetransferor bank'sguarantee iscomplete and irrevocable, thelegalsituation couldbeconsidered tobetheequivalent of thatfollowing acceptance ofahillofexchange (orcertification ofacheque, inthosecountries wherecertification ispermitted). Furthermore, thelegal situation wouldhesimilar tothatfoundinmanylegalsystems whereafunds transfer isfinalatthetimewhenthetransferor hankhasirrevocably committed itselftosettling withthet.ransferee bankby,forexample, issuing tothett.'ansferee bankitsownirrevocable fundstransfer instruction suchas
**Analysis**
The text appears to be discussing the processing and finality of funds transfers, specifically in the context of electronic payment systems and credit card transactions. It touches on the concepts of batch processing, off-line processing, and the guarantee of honour by the transferor bank. The language used is technical and formal, suggesting a focus on financial or economic matters.

**Category**
Transport and communication, Industry