thefundstransfer becomes final. Forthisreason, concern hasbeenexpressed inbanking andlegalcircles astowhether thetimewhen an electronic funds transfer becomes finalisthesame as ordifferent fromthetimewhen a paper-based fundstransfer becomes final. Furthermore, discussions of international fundstransfers haveoftensuggested theimportance offinding a commonunderstanding astowhen an electronic fundstransfer becomes final. 2. Acomparison oftheconcept offinality ina number oflegalsystems showsthattheconcept isimprecise. Although manylegalsystems refertothe finality ofafundstransfer asoccuring atasinglepointoftime,thereare several pointsoftimewhenvarious aspects ofthefundstransfer may become final. Afundstransfer oftenbecomes finalastooneormoreofthebanks implementing itatadifferent timefromthatwhenitbecomes finalastothe transferor andtransferee. 3.Thischapter isdrafted onthebasisthateachofthelegalconsequences oftenassociated withfinality mustbetreated as aseparate problem andthe timeatwhichthatlegalconsequence occursisdetermined byconsiderations relevant toit.Furthermore, itmay besuggested thatinthepreparation of newrulestogovernelectronic fundstransfers, andespecially rulesgoverning therelations between banksindomestic orinternational fundstransfers, a similar approach wouldbedesirable. Therefore, when afundstransfer issaid tobe"final" inthischapter, itshouldbeunderstood tomean no more than thatacertain numberoflegalconsequences mayhaveoccurred inrespect of thatfundstransfer, butthattheyarenotnecessarily thesame as thelegal consequences whichmayoccurinanyparticular legalsystem. A.Whenfundstransfers becomefinal ~ 4. The timewhen a fundstransfer isfinal,orwhencertain legal consequences occur,isnormally associated withaspecific actionofabank. Thereisalonglistofactions bybankswhichareconsidered orwhichmight beconsidered tomake a fundstransfer finalinvarious countries. Inthe following paragraphs arediscussed someofthemoreimportant ofthose actions. Otheractions areusually variations ofthosediscussed. 1.Credittransfers (a)Debittotheaccount ofthetransferor 5.Inonecountry (France) ithasbeenheldthatone-bank andtwo-bank cradittransfers arefinal,atleasttotheextentthatthefundstransfer instruction cannolongerbewithdrawn bythetransferor, whenthe transferor's account isdebited. Ithasbeensug&ested thatthefunds transfer shouldalsobeconsidered finalwhereinsolvency proceedings are subsequently commenced against thetransferor. Thedoctrinal explanation for legalfinality ofacredittransfer upondebitofthetransferor's account iGA/CN.9/266/Add.l En~11sh Page4 thatthetransferor thereby losesownership ofthefunds. Totheextentthis ruleisgeneralized tootherconsequences offinality, itleadstotheresult that.inacne-ibanktransfer at.abankwithmultiple branches orinatwo-bank transfer, thefundstransfer couldbecomefinalseveral daysbeforethe transferee's account wascredited infact. 6.However, nocountry isknowntoapplythisreasoning tothree-·bank transfers. AreasonoftengiveninFranceforthedifferent treatment isthat inathree-bank transfer thefundsareconsidered tobeinthehandsofan agentofthetransferor untiltheaccount ofthetransferee bankhasbeen credited bytheintermediary bankand,untilthatmoment, thetransferor can revoketheagency. 7.Inmanyotherbanking systemsitisnotacceptable forfundstransfers to becomelegally finalforanypurpose beforethetransferee bankhashadthe opportunity toexercise itsjudgment astotheacceptability ofthesettlement offered. Insomecountries thefailure ofabanktosettleforadomestic fundstransfer may be a distinct possihility andinternational fundstransfers bytheirverynatureraisethepossibility thatforeign transferor banksmay beunabletofulfill theirobligations. However, thesettlement question need notaffectthequestion offinality wherethestructure ofthebanking system precludes thepossibility thattransferee bankswillnotreceive settlement, andparticularly whereallbanksareowned by thestate. (b)Credittotheaccount ofthetransferee bank 8.Ifthecredittransfer between thebanksthemselves isfinalwhenthe transferee bank'saccount hasbeencredited bythetransferor bankor
**Analysis**
The text appears to be discussing the legal and banking aspects of electronic funds transfers, specifically the concept of finality in such transactions. It explores the differences in how various countries approach this issue and the implications for international transactions. The text does not seem to be related to economic development, natural resources, or environmental issues, and it does not discuss agriculture, forestry, fishing, health, education, employment, humanitarian aid, culture, or science and technology.

**Category**
Transport and communication, Industry