§ 34.1-5-114 — Assignment of proceeds

Wyoming § 34.1-5-114

• Jurisdiction: Wyoming
• Title 34.1: Uniform Commercial Code
• Art. 4: BANK DEPOSITS AND COLLECTIONS

Text

(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.