ofthefundstransfer instruction. However, ifthefundstransfer wasforthe purpose ofdischarging avalidobligation owed by thetransferor tothe tranferee, theobligation wouldremain andwouldneedtobedischarged by a subsequent fundstransfer. Therefore. asecondapproach isthat.although the transferor bankwouldinprinciple herequired toreverse thedebittothe transferor's account. ifthebankshowedthatthetransferee wasauthorized as against thetransferor toretainthefunds.itcouldmaintain thedebittothe transferor's account. (b)Recovery ofcreditinadebittransfer on demand oftransferor bank 74.Exceptfortherelatively fewdebittransfer instructions whicharesent tothetransferor bankforcollection only.atransferor banknormally gives provisional credittoapresenting bankforalldebittransfer instructions presented. Thisprovisional creditdoesnotsignify finality ofthefunds transfer. Therefore. theprovisional creditmay bereversed ifthedebit transfer instruction isdishonoured inthepropermanner andwithinthe allowable periodoftime.• 75.Furthermore. inthevastmajority ofcasesinwhichthetransferor bank couldhavedishonoured apaper-based debittransfer instruction, ithasthe righttorecover thecredit fromthepresenting bank(andtherefore fromthe transferee) eventhoughthefundstransfer hasbecomefinal. Themajor exception isthatinmostcountries thetransferor bankmaynotrecover a creditwhichhasbecomefinalonthegrounds thatthebalance inthe transferor's account wasinsufficient whenthedebittothataccount was entered. Moreover, incommon lawcountries. aswellasinsomecivillaw • countries, thetransferor bankmaynotreverse thecreditgiventocertain goodfaithparties inhonourofachequeorbillofexchange bearing aforgery ofitscustomer's signature asdrawer. Inthesecountries thetruncation of cheques withelectronic presentation raisesthequestion whether the transferor bankwillbeboundbythisgeneral ruleorwhether thelawshould bechanged torelieve thetransferor bankofthatresponsibility. 76.Thislatterproblem israisedinasomewhat different wayinconnection withdebittransfers madepursuant toastanding authorization todebit.If theauthorization islodgedwiththetransferee bankorwiththetransferee, bothofwhicharecommoninsomecountries, thetransferor bankhasno wayto knowwhether thedebittransfer instruction isproperly authorized unlessthe transferor complains aboutthedebittohisaccount when he receives a statement ofaccount activity covering theperiodinquestion. Therefore, it iscommoninsuchschemes forthetransferee banktoguarantee tothe transferor bankthatthedebittransfer instruction isproperly authorized and thatitwillreimburse thetransferor hankforanychallenged transfers. In turn.thetransferee isrequired toguarantee reimbursement tothetransferee bank.• •A/CN.9/266/Add.l English Page21 (c)Recovery ofcreditinacredittransfer 77.Inmanylegalsystems, oncethefundstransfer isfinal,thetransferee bankmaynotreverse thecredittothetransferee's account onthegroundsit hasfailedtoreceive settlement. If,atthetimethetransferee bankmakes thecreditavailable tothetransferee, thereisanydoubtwhether settlement willoccur,thecreditmay beentered provisionally orothermeans may be takentoprevent thefundstransfer frombecoming final. 78.Inseveral countries inwhichcredittransfers havenotbeenthenormal meansofinter-bank fundstransfers, doubtshavebeenexpressed whether appropriate legaltheories existtoenablethetransferee banktorecover from thetransferee acreditentered inerror. Credits entered inerroroccur,for example, bythetransferee bankcrediting an amount greater thanthecorrect amount, crediting thesametransfer twiceorcrediting thewrongaccount. Nevertheless, inmostlegalsystemsitisclearthat,ingeneral, thecredits established inerrorcanberecovered bythetransferee bank.Insomelegal systems abankhastherighttocorrect creditentriesithasmadeinerrorby debiting thetransferee's account eventhoughthecredithasbecomefinalbut maycorrect errorsmade by a transferor orasending bankonlywiththe express permission ofthetransferee. (d)Rightofbanktorecover creditbyreversing entry 79.Insomecountries abankhastherighttoreimburse itselfforacredit entered inerrorbyreversing thecreditwithout theexpress permission ofthe transferee. Thisrightmayexistforalimited numberofdaysafterthefunds
**Analysis**
The text appears to be discussing the rules and regulations surrounding fund transfers between banks, including the transfer of credits and debits, and the rights of banks to recover credits entered in error. It seems to be more focused on the financial and legal aspects of these transactions rather than any broader social or economic context.

**Category**
Finance, International trade