France introduces a novel legal tool to foster global trade expansion
In a bid to digitize trade finance transactions and modernize the French legal system, a new law was enacted on June 13, 2024. While the exact name of the law remains unspecified in the provided search results, its impact on the French economy is undeniable.
At the heart of this transformation is the concept of "titre transférable," or transferable documents, which can now be converted between paper and electronic formats, thanks to the Competitiveness Law. This law allows for the creation, signing, and storage of transferable documents electronically, providing a more efficient and streamlined process.
The transfer of an electronic transferable document occurs by transferring exclusive control over it. This exclusive control enables the holder to claim the performance of rights, modify, and transfer the electronic transferable document. The holder of an electronic transferable document, as per the Competitiveness Law, is the person having exclusive control over it.
For a document to be considered valid, it must contain all mandatory information required in the paper-based counterpart. Moreover, a reliable method is required for the cumulative demonstration of the uniqueness, holder's exclusive control, signatories and subsequent holders' identification, document integrity, and evidence preservation of any amendments.
Upon conversion, the converted document retains the properties of the original, and the original ceases to be valid. Electronic transferable documents have the same legal and functional equivalence as paper-based ones, under the principle established by the Competitiveness Law. This ensures that the transition to digital does not compromise the legitimacy of these important documents.
The Competitiveness Law also sets out conditions for an electronic transfer document to have the same effects as a paper-based one. These conditions aim to maintain the integrity and security of these digital documents, ensuring they can be trusted in legal proceedings.
In conclusion, the Competitiveness Law in France is paving the way for a more digitized and efficient trade finance system. By allowing for the conversion and creation of transferable documents electronically, it is modernizing the French legal system and making it more accessible in the digital age.
