§ 6A-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 givingof value by the issuer or any nominated person under the letter of credit. Theterm does not include a beneficiary's drawing rights or documents presented bythe beneficiary.
(b) A beneficiary may assign its right to part or all of theproceeds of a letter of credit. The beneficiary may do so before presentationas a present assignment of its right to receive proceeds contingent upon itscompliance with the terms and conditions of the letter of credit.
(c) An issuer or nominated person need not recognize anassignment of proceeds of a letter of credit until it consents to theassignment.
(d) An issuer or nominated person has no obligation to giveor withhold its consent to an assignment of proceeds of a letter of credit, butconsent may not be unreasonably withheld if the assignee possesses and exhibitsthe letter of credit and presentation of the letter of credit is a condition tohonor.
(e) Rights of a transferee beneficiary or nominated personare independent of the beneficiary's assignment of the proceeds of a letter ofcredit and are superior to the assignee's right to the proceeds.
(f) Neither the rights recognized by this section between anassignee and an issuer, transferee beneficiary, or nominated person nor theissuer's or nominated person's payment of proceeds to an assignee or a thirdperson affect the rights between the assignee and any person other than theissuer, transferee beneficiary, or nominated person. The mode of creating andperfecting a security interest in or granting an assignment of a beneficiary'srights to proceeds is governed by chapter 9 of this title or other law. Againstpersons other than the issuer, transferee beneficiary, or nominated person, therights and obligations arising upon the creation of a security interest orother assignment of a beneficiary's right to proceeds and its perfection aregoverned by chapter 9 of this title or other law.
§ 6A-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 givingof value by the issuer or any nominated person under the letter of credit. Theterm does not include a beneficiary's drawing rights or documents presented bythe beneficiary.
(b) A beneficiary may assign its right to part or all of theproceeds of a letter of credit. The beneficiary may do so before presentationas a present assignment of its right to receive proceeds contingent upon itscompliance with the terms and conditions of the letter of credit.
(c) An issuer or nominated person need not recognize anassignment of proceeds of a letter of credit until it consents to theassignment.
(d) An issuer or nominated person has no obligation to giveor withhold its consent to an assignment of proceeds of a letter of credit, butconsent may not be unreasonably withheld if the assignee possesses and exhibitsthe letter of credit and presentation of the letter of credit is a condition tohonor.
(e) Rights of a transferee beneficiary or nominated personare independent of the beneficiary's assignment of the proceeds of a letter ofcredit and are superior to the assignee's right to the proceeds.
(f) Neither the rights recognized by this section between anassignee and an issuer, transferee beneficiary, or nominated person nor theissuer's or nominated person's payment of proceeds to an assignee or a thirdperson affect the rights between the assignee and any person other than theissuer, transferee beneficiary, or nominated person. The mode of creating andperfecting a security interest in or granting an assignment of a beneficiary'srights to proceeds is governed by chapter 9 of this title or other law. Againstpersons other than the issuer, transferee beneficiary, or nominated person, therights and obligations arising upon the creation of a security interest orother assignment of a beneficiary's right to proceeds and its perfection aregoverned by chapter 9 of this title or other law.
§ 6A-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 givingof value by the issuer or any nominated person under the letter of credit. Theterm does not include a beneficiary's drawing rights or documents presented bythe beneficiary.
(b) A beneficiary may assign its right to part or all of theproceeds of a letter of credit. The beneficiary may do so before presentationas a present assignment of its right to receive proceeds contingent upon itscompliance with the terms and conditions of the letter of credit.
(c) An issuer or nominated person need not recognize anassignment of proceeds of a letter of credit until it consents to theassignment.
(d) An issuer or nominated person has no obligation to giveor withhold its consent to an assignment of proceeds of a letter of credit, butconsent may not be unreasonably withheld if the assignee possesses and exhibitsthe letter of credit and presentation of the letter of credit is a condition tohonor.
(e) Rights of a transferee beneficiary or nominated personare independent of the beneficiary's assignment of the proceeds of a letter ofcredit and are superior to the assignee's right to the proceeds.
(f) Neither the rights recognized by this section between anassignee and an issuer, transferee beneficiary, or nominated person nor theissuer's or nominated person's payment of proceeds to an assignee or a thirdperson affect the rights between the assignee and any person other than theissuer, transferee beneficiary, or nominated person. The mode of creating andperfecting a security interest in or granting an assignment of a beneficiary'srights to proceeds is governed by chapter 9 of this title or other law. Againstpersons other than the issuer, transferee beneficiary, or nominated person, therights and obligations arising upon the creation of a security interest orother assignment of a beneficiary's right to proceeds and its perfection aregoverned by chapter 9 of this title or other law.
