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Can you summarize NVRS 104.5114?
Uniform Commercial CodeOriginal Articles > Assignment of proceeds.
Short Summary
This section of the Nevada Revised Statutes, specifically under the Uniform Commercial CodeOriginal Articles, 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, 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 their consent is obtained. 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. It is important to note that the rights and obligations between the assignee and any person other than the issuer, transferee beneficiary, or nominated person are governed by other laws. The creation and perfection of a security interest or assignment of a beneficiary’s rights to proceeds are governed by Article 9 or other applicable law.
Whom does it apply to?
Beneficiaries, issuers, and nominated persons involved in letter of credit transactions
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
Nevada