Written by attorneys · grounded in primary & secondary sources — see below
An electronic transfer of funds requested by a sender located in the United States to a designated recipient at a location in a foreign country. The transfer is initiated by a remittance transfer provider regardless of whether the sender maintains an account with the provider or whether the transfer qualifies as an electronic fund transfer under the Electronic Fund Transfer Act.
Sources & Authorities
How it applies
Common Examples
2
Contingent Fee Recovery Sent Abroad
Raymond Ramos, a client in a personal injury matter, reached a settlement that entitled his lawyer to a contingent fee. The lawyer prepared the required signed writing detailing the percentage and expense deductions. After the insurer wired the net recovery to the lawyer, the lawyer initiated a remittance transfer to send Raymond's share to his family in another country. The transfer complied with the written agreement because the lawyer had already provided the required statement showing the remittance and its calculation method.
Trust Proceeds Transferred Overseas
Roberto Reyes served as trustee of a trust holding land in one state. The trust instrument directed him to sell the land and send the proceeds to a trust company in another country for administration. After the sale, Roberto completed a remittance transfer of the net proceeds. The courts of the place of administration then exercised jurisdiction over the trust of the proceeds under the terms of the instrument.
Put it into practice
Test Yourself
10
Practice Questions5
· 4 primary sources
Select any source to read its text and confirm it supports the definition.
Uniform Acts
Model Codes
Restatements
Hornbooks
Common questions
Frequently Asked
3
What disclosures must a remittance transfer provider make to the sender?+
A provider must give the sender written disclosures about the amount to be received by the designated recipient, the exchange rate, fees, and taxes. The provider must also supply a receipt after payment that confirms the promised amounts and any error-resolution rights.
Does the Remittance Transfer Rule apply when the sender has no account with the provider?+
Yes. The definition expressly covers transfers initiated by a remittance transfer provider whether or not the sender maintains an account with that provider.
How does UCC Article 4A interact with the Remittance Transfer Rule?+
Article 4A does not apply to a funds transfer governed by the Electronic Fund Transfer Act. When a remittance transfer is also an electronic fund transfer, the EFTA governs to the extent of any inconsistency with Article 4A.
Secured TransactionsRights of third parties; perfected and unperfected security interests; rules of priority (§ 9-301, et seq.) · Defenses against assignee; modification of contract (§§ 9-404 through 9-406)UBEIntermediate