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Can you summarize NHRS 382-A:5-114?
UNIFORM COMMERCIAL CODE > Assignment of Proceeds.
Short Summary
This section of the New Hampshire Revised Statutes, specifically the Uniform Commercial Code (Chapter 382-A), governs the assignment of proceeds of a letter of credit. It defines the term ‘proceeds of a letter of credit’ as 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 section allows a beneficiary to assign its right to part or all of the proceeds of a letter of credit, either before presentation as a present assignment or contingent upon compliance with the terms and conditions of the letter of credit. However, the assignment of proceeds is not recognized by the issuer or nominated person until they consent to the assignment. The rights of a transferee beneficiary or nominated person are independent of the beneficiary’s assignment of the proceeds and superior to the assignee’s right to the proceeds. The section also clarifies that the rights and obligations arising from the creation of a security interest or assignment of a beneficiary’s right to proceeds, as well as their perfection, are governed by Article 9 or other applicable law. The section does not mention any specific penalties or exemptions.
Whom does it apply to?
Beneficiaries, issuers, nominated persons, assignees, transferee beneficiaries
What does it govern?
Assignment of proceeds of a letter of credit
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
New Hampshire