Unofficial translation (c) Soyuzpravoinform LLC

LAW OF UKRAINE

of June 3, 2025 No. 4466-IX

About factoring

This Law determines the general legal basis of factoring in Ukraine.

Section I. General provisions

Article 1. Determination of terms

1. In this Law terms are used in the following value:

1) the basic agreement - the prisoner between the client and the debtor the purchase and sale agreement, deliveries or hiring (lease) of property, transfer of property rights of intellectual property, the contract for performance of works, the contract or the service provision agreement (except the agreement on provision of financial services of other, than the agreement of factoring) based on which there is right of monetary claim;

2) the debtor - the physical person, physical person entrepreneur or the legal entity obliged to pay sum of money for accomplishment of the monetary claim arising from the basic agreement;

3) electronic trade system - the two-level information and communication system consisting of the central database and the authorized electronic platforms which interact with the central database via the interface of programming of appendices of such central database;

4) electronic platform - the hardware and software functioning on the Internet, connected to the central database and providing to its users, participants opportunity to use services of electronic trading system with automatic exchange of information about process of holding competitive procedures (including in the form of electronic auctions);

5) the client - the legal entity or the physical person - the entrepreneur which departs the right of the monetary claim arising from the basic agreement, factor;

6) confidential factoring - the factoring with regress which is providing accomplishment of monetary claim before factor according to the basic agreement by the client and not providing the notification of the debtor on concession of the right of monetary claim;

7) national digital platform of attraction of financing on the basis of assets (factoring) - digital system of competitive and transparent financing of entrepreneurship with use of organizational technical capabilities of the electronic trading system providing access for clients, debtors and factors for the purpose of the conclusion of agreements of factoring;

8) the right of monetary claim - the right of the available monetary claim and/or the right of future monetary claim;

9) the right of future monetary claim - the right of monetary claim (certain part of monetary claim or set of monetary claims) arising based on the basic agreement after the conclusion of the transaction about concession of the right of monetary claim;

10) the right of the available monetary claim - the right of monetary claim (certain part of monetary claim or set of monetary claims) which arose based on the basic agreement and existing at the time of the conclusion of the transaction about concession of the right of monetary claim;

11) priority - the privilege of factor concerning the right of other person to the same right of monetary claim;

12) factor - the predostavitel of financial services having the right to provide services in factoring according to the law including predostavitel of financial services - the nonresident having the right to provide services in factoring according to the law of the state in which it is registered;

13) factoring - service or several services providing factor based on the agreement of factoring;

14) factoring without regress - the factoring type which is not providing the right of factor to address the client with the requirement about payment of part or all-in cost of the right of monetary claim for the yielded right of monetary claim, in case of non-execution or improper execution by the debtor of the monetary claim yielded by the client to factor which right to claim gives up;

15) factoring with regress - the factoring type providing obligation of the client to pay to factor the amount determined according to the agreement of factoring, according to the procedure, the stipulated in Article 26 these Laws in case of non-execution or improper execution by the debtor of monetary claim which right gives up.

2. Other terms in this Law are used in the values given in the Civil code of Ukraine, the laws of Ukraine "About financial services and finance companies", "About banks and banking activity", "About electronic documents and electronic document management", "About electronic commerce", "About financial accounting and the financial reporting in Ukraine".

Article 2. Law coverage

1. This Law governs the relations between factors, clients and debtors in case of factoring provision of services.

2. Operation of this Law does not extend to transactions on concession of the right of monetary claim:

1) if the right of the yielded monetary claim arises based on agreements on provision of financial services of others, than agreements of factoring;

2) which do not provide payment of any remuneration, including in the form of the commission, discount from the cost of the right of monetary claim (obligation), to the new creditor in the obligation;

3) made by persons which are not meeting the requirements of this Law;

4) if the term of accomplishment of the yielded monetary claim expired at the time of making of such transaction;

5) made in the cases provided by the Law of Ukraine "About system of guaranteeing household deposits".

Article 3. The legislation in the sphere of factoring

1. The relations arising based on the agreement of factoring are regulated by the Constitution of Ukraine, the Civil code of Ukraine, this Law, international treaties of Ukraine which consent to be bound is provided by the Verkhovna Rada of Ukraine, and also regulatory legal acts adopted on their accomplishment.

2. The relations on provision of services on factoring are governed taking into account the features established by the laws of Ukraine "About banks and banking activity", "About financial services and finance companies" and also the regulatory legal acts adopted on their accomplishment.

3. Provisions of other regulatory legal acts govern the relations in the sphere of factoring in the part which is not contradicting this Law.

Article 4. State regulation and supervision of activities for factoring provision of services

1. State regulation and supervision of activities for provision of services of factoring is exercised by the National Bank of Ukraine within the powers determined by the law.

2. Other state bodies exercise the state supervision (control) of activities of participants of the market of factoring and obtain from them information within the powers determined by the law.

Section II. Factoring agreement

Article 5. Subject of the agreement of factoring

1. The subject of the agreement of factoring is the right of monetary claim.

The agreement of factoring determines the relations of the parties arising in the course of concession of the rights of monetary claims according to one or several basic agreements based on one or several transactions about concession of the right of monetary claim.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info