{"data":{"id":"us-ky/krs-355.5-114","jurisdiction":"us-ky","citation":"KRS 355.5-114","heading":"Assignment of proceeds.","body":"(1) In this section, \"proceeds of a letter of credit\" means the cash, check, accepted draft,\nor other item of value paid or delivered upon honor or giving of value by the issuer\nor any nominated person under the letter of credit. The term does not include a\nbeneficiary's drawing rights or documents presented by the beneficiary.\n(2) A beneficiary may assign its right to part or all of the proceeds of a letter of credit.\nThe beneficiary may do so before presentation as a present assignment of its right to\nreceive proceeds contingent upon its compliance with the terms and conditions of\nthe letter of credit.\n(3) An issuer or nominated person need not recognize an assignment of proceeds of a\nletter of credit until it consents to the assignment.\n(4) An issuer or nomin ated person has no obligation to give or withhold its consent to\nan assignment of proceeds of a letter of credit, but consent may not be unreasonably\nwithheld if the assignee possesses and exhibits the letter of credit and presentation\nof the letter of credit is a condition to honor.\n(5) Rights of a transferee beneficiary or nominated person are independent of the\nbeneficiary's assignment of the proceeds of a letter of credit and are superior to the\nassignee's right to the proceeds.\n(6) Neither the rights r ecognized by this section between an assignee and an issuer,\ntransferee beneficiary, or nominated person nor the issuer's or nominated person's\npayment of proceeds to an assignee or a third person affect the rights between the\nassignee and any person other  than the issuer, transferee beneficiary, or nominated\nperson. The mode of creating and perfecting a security interest in or granting an\nassignment of a beneficiary's rights to proceeds is governed by Article 9 of this\nchapter or other law. Against persons other than the issuer, transferee beneficiary, or\nnominated person, the rights and obligations arising upon the creation of a security\ninterest or other assignment of a beneficiary's right to proceeds and its perfection are\ngoverned by Article 9 of this chapter or other law.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33606","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:46Z","sha256":"afb723ab671220d53386befa3928bd4cab9d50062974fc898b3f1e2a9d990860","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.5-113","next":"us-ky/krs-355.5-115"},"notice":"GroundRules: Original legal text. Not legal advice."}