Regulations

In Italy the factoring agreement is regulated by Law nr. 52 of 21.02.1991 which has integrated the rules stated in the arts. 1260 et seq. of the Civil Code. With this law, legislator has:

  • foreseen the possibility of transferring even receivables prior to the conclusion of contracts from which arise;
  • allowed the transferability to the factor also of bulk existing and future receivables;
  • introduced facilities in the regime of the enforceability of assignments to third parties.

Law 21st February 1991, no. 52
Rules regarding the assignment of corporate credits (bills receivable).

Art. 1 Scope of application
Art. 2 Register of companies which practise the assignment of credits
Art. 3 Assignment of future credits and credits in bulk
Art. 4 Guarantee of solvency
Art. 5 Effect of the assignment in respect of third parties
Art. 6 Bankruptcy revocation of the payments of the ceded debtor
Art. 7 Bankruptcy of the Transferor

Civile code

FOURTH BOOK OF OBLIGATIONS.
CHAPTER I - CONCERNING OBLIGATIONS IN GENERAL
ARTICLE V - ASSIGNMENT OF CREDITS

Art. 1260 Transferability of the credits
Art. 1261 Prohibition to transfer
Art. 1262 Instruments of evidence of the credit
Art. 1263 Credit accessories
Art. 1264 Effect of the assignment on the ceded debtor
Art. 1265 Effect of the assignment on third parties
Art. 1266 Obligation of guarantee of the assignor
Art. 1267 Guarantee of solvency of the debtor