insolven~y proceedings normally terminates thetransferor bank'sauthority to honour anyfundstransfer instructions whichhavenotalready becomefinal. Because ofthestrongpolicytopreserve theinsolventts remaining assetsforA/CN.9/266/Add.1 English Page16 distribution tocreditors inaccordance withthestatutory priorities, insome countries thetransferor bank'sauthority tohonourfundstransfer instructions terminates whentheinsolvency proceedings arebegun, eventhough thebankmayhavenonoticeofthoseproceedings. (iii)Legalincapacity oftransferor 55.Atransfe~or maynotyethavelegalcapacity toissuefundstransfer instructions ormayloselegalcapacity because oftheconviction ofcertain crimes, declaration ofmental incompetence, declaration ofreceivership orfor similar reasons. Wherethelegalincapacity arisesoutofminority, declaration ofmental incompetence orthelike,thedesiretoprotect the incapable person fromhisownactsmayrequire thereversal offundstransfers whichotherwise appeartohefinal. Wherethetransferor islegally incapable because efconviction ofacrime,itwouldseemincongruous nottoallowthe transferee tobenefit fromafundstransfer inprocess. (iv)Attachment ofthetransferor's account 56.Attachment ofthetransferor's account normally takeseffect uponnotice tothetransferor bank.ExceptinthecaseoftheissueofachequeinFrance bywhichtheprovision istransferred totheholderofthecheque, the attachment wouldnormally takepriority overadebittransfer whichhadnot becomefinalbeforethelegalprocess tookeffect. However, wherethedebit tothetransferor's account isfirstentered provisionally, attachment ofthe account duringtheperiodofreversibility may betoolateeventhoughthe fundstransfer maynotyetbeconsidered final. 57.Inthecaseofacredittransfer, insomelegalsystems thelegalprocess wouldbetoolateifthetransferor's account hadalready beendebited. However, inotherlegalsystems, sincethecredittransfer wouldnotbefinal uponthemereentryofthedehittothetransferor's account, thecreditmight beconsidered stilltobesubject tothelegalprocess. Insuchacase,the transferor bankwouldhavetousereasonable efforts tostopthecompletion of thecredittransfer bynotifying thetransferee bankofthelegalprocess. 58.Difficult questions mayheraised astothetransferor bank'sobligation foracredittransfer madethr.ough anintermediary bank.Sincethetransferor bankknowsthenameofthetransferee bankandallthedetails ofthe transfer, itcouldsendthenoticedirectly tothetransferee bank. However, sincethereisnodirectrelationship between thetransferorbank andthe transferee bankwhenintermediary hankshavebeenused,itmaynotbeclear whatobligation thetransfere~ hankwouldhavetoactuponthenoticegivenby thetransferor bank.Theseproblems wouldbeparticularly difficult inthe caseofaninternational fundstransfer wherethetransferor bankand transferee bankmay besubject todifferent rulesonfinality andwhere intermediate portions ofthefundstransfer mayhavebecomefinalunderthe rules&overning fundstransfer transactions between theintermediary banks.• • 59. make suchAs aresultitcouldbeexpected thatthetransferor bankmighthaveto reasonable efforts tostopthecompletion ofthefundstransfer or,ifno efforts weremade,toshowthattheywouldhavefailed.• •A/CN.91266/Add.l English Page17 (y)Withdrawal offundstransfer instruct innbytransferor 60.Inaccordance withgeneral legalprinciples apersonmaywlthdratol (or revoke) instructions orauthority toactwhichheha~giventoanother until suchtimeastheinstructions orauthority havebeenactedupon.Underthese principles. insomecountries thetransferor maywithdraw fromthetransferor banktheauthority tohonour afundstransfer instruction uptoth~momentthe transfer isfinal. However. theauthority orinstructions maybeirrevocable iftheyhavebeenexpressly statedtobeso.Wheretheagencyisforthe benefit ofathirdpersonor oftheagenthimself. therightoftheprincipal towithdraw theauthority toactmay belimited so astoprotect theagentor thirdperson. Therefore. sinceastanding authorization todebitmaybefor thebenefit ofthetransferee. thetransferor mightneedtheagreement ofthe transferee towithdraw theauthorization orthetransferee mayneedtobe givenadequate notice so astobesurehecanreceive themoney due tohim. Whenthebankitselfisthebeneficiary. theauthority todebitmaybe irrevocable without theagreement ofthebank. 61.Thewithdrawal ofafundstransfer instruction bythetransferor creates manyofthesameproblems forthetransferor bankasdoesthewithdrawal of
**Analysis**
The text appears to be discussing the legal and regulatory aspects of international fund transfers, including the termination of authority to honour transfer instructions in the event of insolvency, legal incapacity, attachment of accounts, and withdrawal of transfer instructions. The text also touches on the complexities of credit transfers and the obligations of transferor banks in such situations. Given the focus on legal and financial issues, it seems likely that the text is related to a category that deals with economic or financial topics.

**Category**
International trade, Industry