UNCITRAL Model Law
Definition
The UNCITRAL Model Law on Cross-Border Insolvency (1997), a template for coordinating insolvency proceedings across borders. Countries that adopt it (including the US as Chapter 15 of the Bankruptcy Code) recognize foreign proceedings and cooperate with foreign insolvency courts.
- Adopted
- 1997
- US implementation
- Chapter 15 of the Bankruptcy Code
- Function
- Recognition of and cooperation with foreign insolvency proceedings
- Scope
- Cross-border coordination, not substantive insolvency law itself
Common questions
Why does a fraud investigator need to know about this Model Law?+
When assets or a debtor company span multiple countries, the Model Law determines which court's insolvency proceeding is recognised as the main one and how evidence and asset-freezing orders obtained in one jurisdiction can be enforced in another.
Does adopting the Model Law harmonise insolvency law between countries?+
No, it only harmonises the procedural recognition and cooperation mechanism between courts. Each country keeps its own substantive insolvency rules on debt priority, discharge and creditor rights.
Related terms
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- Preference Payment
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