Exchange Losses from International Electronic Funds Transfers: Time to Unify the Law

Lucia, John S. Santa | January 1, 1988

This Comment is divided into four parts. Section II briefly characterizes the nature of the foreign exchange loss problem in EFTs.24 Section III broadly reviews the current law respecting exchange losses and discusses the increased complexity of the exchange loss problem due to the introduction of message-switching and clearinghouse intermediaries in EFTs.25 Section IV reviews and evaluates the proposal to extend the SWIFT interest loss allocation rules to the exchange loss problem, ultimately concluding that the proposal does not sufficiently resolve the exchange problem as it relates to EFT intermediaries.26 Finally, Section V presents two alternatives to deal specifically and exclusively with the allocation of exchange loss liability resulting from delays in EFTs.