Non-cash funds in the bankrupt bank account lose their purpose as a means of payment
The court again recalled that in the absence of funds in the correspondent account of the servicing bank, it is not able to actually execute customer orders due to insolvency.
Tenzor Consulting Group partner, lawyer Anton Makeychuk believes that the definition of the Armed Forces is, rather, an example of the fact that the higher authority corrects errors of lower courts. “The position considered by the Court is that an intrabank record of a bank transferring funds from the account of one client (debtor) to the account of another client (creditor bank) in the absence of real money on the bank’s correspondent account could not be qualified by the courts as an action of the company for the fulfillment of credit obligations to Timerbank, but, in fact, it confirms the assignment of rights of claims to the bank from the payer to the recipient of the bank’s funds (if the recipient accepts it). ”
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