§490:5-114  Assignment of proceeds. 
(a)  In this section, "proceeds of a letter of credit" means the
cash, check, accepted draft, or other item of value paid or delivered upon
honor or giving of value by the issuer or any nominated person under the letter
of credit.  The term does not include a beneficiary's drawing rights or
documents presented by the beneficiary.



(b)  A beneficiary may assign its right to part
or all of the proceeds of a letter of credit.  The beneficiary may do so before
presentation as a present assignment of its right to receive proceeds
contingent upon its compliance with the terms and conditions of the letter of
credit.



(c)  An issuer or nominated person need not
recognize an assignment of proceeds of a letter of credit until it consents to
the assignment.



(d)  An issuer or nominated person has no
obligation to give or withhold its consent to an assignment of proceeds of a
letter of credit, but consent may not be unreasonably withheld if the assignee
possesses and exhibits the letter of credit and presentation of the letter of
credit is a condition to honor.



(e)  Rights of a transferee beneficiary or
nominated person are independent of the beneficiary's assignment of the
proceeds of a letter of credit and are superior to the assignee's right to the
proceeds.



(f)  Neither the rights recognized by this
section between an assignee and an issuer, transferee beneficiary, or nominated
person nor the issuer's or nominated person's payment of proceeds to an
assignee or a third person affect the rights between the assignee and any
person other than the issuer, transferee beneficiary, or nominated person.  The
mode of creating and perfecting a security interest in or granting an
assignment of a beneficiary's rights to proceeds is governed by article 9 or
other law.  Against persons other than the issuer, transferee beneficiary, or
nominated person, the rights and obligations arising upon the creation of a
security interest or other assignment of a beneficiary's right to proceeds and
its perfection are governed by article 9 or other law. [L 1996, c 39, pt of §1]