Florida Statute 675.114 - Full Text and Legal Analysis

The 2025 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.

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Amendments to 675.114

Annotations, Discussions, Cases:

Cases Citing Statute 675.114

Total Results: 9

Republic National Bank of Miami, a National Banking Association v. Fidelity and Deposit Company of Maryland, a Maryland Corporation

894 F.2d 1255, 10 U.C.C. Rep. Serv. 2d (West) 1330, 1990 U.S. App. LEXIS 2294, 1990 WL 6919

Court of Appeals for the Eleventh Circuit | Filed: Feb 20, 1990 | Docket: 738844

Cited 18 times | Published

on the face of the letter of credit. See id. § 675.114(1). If the documents conform, the bank must honor

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

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

District Court of Appeal of Florida | Filed: Jun 27, 1989 | Docket: 1719770

Cited 10 times | Published

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

Braun v. Intercontinental Bank

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

District Court of Appeal of Florida | Filed: Mar 19, 1985 | Docket: 1524940

Cited 9 times | Published

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

Sea Management Service v. Club Sea

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

District Court of Appeal of Florida | Filed: Sep 1, 1987 | Docket: 473372

Cited 7 times | Published

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

Daiwa Products, Inc. v. NATIONSBANK, NA

885 So. 2d 884, 2004 WL 1933124

District Court of Appeal of Florida | Filed: Sep 1, 2004 | Docket: 2549118

Cited 4 times | Published

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

Cargill, Inc. v. Sunlight Foods, Inc.

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

District Court of Appeal of Florida | Filed: Jun 18, 1991 | Docket: 1487721

Cited 4 times | Published

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

CITIBANK, NA v. Klein

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

District Court of Appeal of Florida | Filed: Mar 24, 1981 | Docket: 1732042

Cited 2 times | Published

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

Banco Lavra, S.A. v. Cargil International

732 So. 2d 1086, 37 U.C.C. Rep. Serv. 2d (West) 145, 1998 Fla. App. LEXIS 13467, 1998 WL 764689

District Court of Appeal of Florida | Filed: Oct 21, 1998 | Docket: 64788285

Published

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

American Nat. Bk. v. Cashman Bros. Marine

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

District Court of Appeal of Florida | Filed: Sep 26, 1989 | Docket: 1370777

Published

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