Florida Statute 675.114 | Lawyer Caselaw & Research

The 2024 Florida Statutes

Title XXXIX
COMMERCIAL RELATIONS

Chapter 675
UNIFORM COMMERCIAL CODE: LETTERS OF CREDIT

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F.S. 675.114

675.114 Assignment of proceeds.—

(1) For purposes of this section, the term “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.

(2) 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.

(3) An issuer or nominated person need not recognize an assignment of proceeds of a letter of credit until it consents to the assignment.

(4) 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.

(5) 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.

(6) 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 chapter 679 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 chapter 679 or other law.

History.—s. 1, ch. 65-254; s. 3, ch. 87-275; s. 50, ch. 92-82; s. 23, ch. 98-11; s. 1, ch. 99-137.

Note.—s. 5-114, U.C.C.

F.S. 675.114 on Google Scholar

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Amendments to 675.114

Arrestable Offenses / Crimes under Fla. Stat. 675.114

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 675.114.

Annotations, Discussions, Cases:

Cases Citing Statute 675.114

Total Results: 9

Daiwa Products, Inc. v. NATIONSBANK, NA

Court: District Court of Appeal of Florida | Date Filed: 2004-09-01

Citation: 885 So. 2d 884, 2004 WL 1933124

Snippet: prohibiting NationsBank from releasing the funds. See § 675.114(2)(b), Fla. Stat. (1997) (providing that "a court

Banco Lavra, S.A. v. Cargil International

Court: District Court of Appeal of Florida | Date Filed: 1998-10-21

Citation: 732 So. 2d 1086, 37 U.C.C. Rep. Serv. 2d (West) 145, 1998 Fla. App. LEXIS 13467

Snippet: credit prior to honoring the letter of credit § 675.114(2), Fla.Stat. (1997). The buyer sought no such

Banco Do Brasil v. City Nat. Bank

Court: District Court of Appeal of Florida | Date Filed: 1992-12-01

Citation: 609 So. 2d 689, 17 U.C.C. Rep. Serv. 2d (West) 840, 1992 Fla. App. LEXIS 4748, 1992 WL 353672

Snippet: F.2d 146 (9th Cir.1979); §§ 675-102, 675-106, 675-114, Fla. Stat. (1981). Therefore, for reasons above

Cargill, Inc. v. Sunlight Foods, Inc.

Court: District Court of Appeal of Florida | Date Filed: 1991-06-18

Citation: 586 So. 2d 366, 15 U.C.C. Rep. Serv. 2d (West) 208, 1991 Fla. App. LEXIS 5650, 1991 WL 104631

Snippet: is obligated to honor the demand for payment. § 675.114(1), Fla. Stat. (1989); see B.G.H. Insurance Syndicate

American Nat. Bk. v. Cashman Bros. Marine

Court: District Court of Appeal of Florida | Date Filed: 1989-09-26

Citation: 550 So. 2d 98, 14 Fla. L. Weekly 2279, 9 U.C.C. Rep. Serv. 2d (West) 1036, 8 A.L.R. 5th 982, 1989 Fla. App. LEXIS 5397, 1989 WL 113231

Snippet: noted by the Third District in that case, section 675.114(1) provides that an issuer "must honor a draft

BGH Ins. Syndicate, Inc. v. PRESIDENTIAL FIRE & CAS.

Court: District Court of Appeal of Florida | Date Filed: 1989-06-27

Citation: 549 So. 2d 197, 14 Fla. L. Weekly 1564, 1989 Fla. App. LEXIS 3606, 1989 WL 68939

Snippet: Nat'l Bank, 571 F.2d 871 (5th Cir.1978). Section 675.114(1), Florida Statutes (1987) specifies that an issuing

Sea Management Service v. Club Sea

Court: District Court of Appeal of Florida | Date Filed: 1987-09-01

Citation: 512 So. 2d 1025, 12 Fla. L. Weekly 2108

Snippet: the beneficiary. Braun; Fidelity Nat'l Bank; § 675.114(1), Fla. Stat. (1985). An issuing bank is only

Braun v. Intercontinental Bank

Court: District Court of Appeal of Florida | Date Filed: 1985-03-19

Citation: 466 So. 2d 1130, 10 Fla. L. Weekly 735

Snippet: Americano through which Griferia had made demand. § 675.114, Fla. Stat. (1981). See Fidelity National Bank

CITIBANK, NA v. Klein

Court: District Court of Appeal of Florida | Date Filed: 1981-03-24

Citation: 396 So. 2d 763, 31 U.C.C. Rep. Serv. (West) 650

Snippet: notwithstanding the subsequent enactment of Section 675.114(2)(b), Florida Statutes (1979), which authorizes