- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 5. Letters of Credit
- Section 114. Assignment of Proceeds.
previous: Section 113
. Transfer By Operation of Law.
next: Section 115
. Statute of Limitations.
AS 45.05.114. 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 a 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 the beneficiary's right to receive proceeds contingent upon the
beneficiary's 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 the issuer or
nominated person consents to the assignment.
- (d) An issuer or nominated person does not have an 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 if 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 a 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 AS 45.29 or other law. As against a person other than
the issuer, transferee beneficiary, or nominated person, the rights and obligations arising on the creation of a
security interest and its perfection, or other assignment of a beneficiary's rights to proceeds, are governed by AS 45.29 or other law.
All content © 2008 by Touch
N' Go/Bright Solutions, Inc.
Note to HTML Version:
This version of the Alaska Statutes is current through December, 2007. The Alaska Statutes were automatically converted to HTML from a plain text format. Every effort has been made to ensure their accuracy, but this can not be guaranteed. If it is critical that the precise terms of the Alaska Statutes be known, it is recommended that more formal sources be consulted. For statutes adopted after the effective date of these statutes, see, Alaska State Legislature
If any errors are found, please e-mail Touch N' Go systems at E-mail. We
hope you find this information useful.