Florida Statutes

Fla. Stat. § 675.114 (2025)

Assignment of proceeds.

✓ 2025 Florida Statutes — current through the 2025 Regular Session

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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.

Notes of Decisions

Cited in 10 cases, 1981–2004 · leading case: Daiwa Prods., Inc. v. NATIONSBANK, NA, 885 So. 2d 884 (Fla. 4th DCA 2004).

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Daiwa Prods., Inc. v. NATIONSBANK, NA, 885 So. 2d 884 (Fla. 4th DCA 2004). · cites it 9× “The injunctions were issued under the Louisiana Revised Statutes Annotated, Title 10, section 5-114, which is identical to section 675.114. See Cromwell v. Commerce & Energy Bank of Lafayette, 450 So.”

Hamilton Bank, N.A. v. Kookmin Bank, 245 F.3d 82 (2d Cir. 2001). · cites it 2× “Fla.Stat.Ann. § 675.114 (West 1998). Moreover, an Eleventh Circuit case involving a Florida Bank confirms that fraud in the transaction and fraudulent documentation are defenses even in cases governed by the UCP.”

Banco Lavra, S.A. v. Cargil Int'l, 732 So. 2d 1086 (Fla. 3d DCA 1998). · cites it 2× “The documents submitted for payment conformed on their face with the terms of the letter of credit, and the bank paid the beneficiary, as it was obligated to under section 675.”

Cargill, Inc. v. Sunlight Foods, Inc., 586 So. 2d 366 (Fla. 3d DCA 1991). · cites it 7× “§ 675.114(1), Fla. Stat. (1989); see B.G.”

Repub. Nat'l Bank of Miami, a Nat'l Banking Ass'n v. Fid. & Deposit Co. of Maryland, a Maryland Corp., 894 F.2d 1255 (11th Cir. 1990). “See Fla.Stat. § 675.114(3). Until such reimbursement is made, the bank's agreement with its customer invariably allows the bank to hold the bill of lading and other documents presented by the beneficiary as a security interest.”

Bgh Ins. Syndicate, Inc. v. Presidential Fire & Cas., 549 So. 2d 197 (Fla. 3d DCA 1989). · cites it 4× “Section 675.114(1), Florida Statutes (1987) specifies that an issuing bank must honor drafts or demands for payment under a letter of credit when the documents required by the letter of credit appear on their face to comply with the terms of the credit.”

Am. Nat. Bk. v. Cashman Bros. Marine, 550 So. 2d 98 (Fla. 3d DCA 1989). “As noted by the Third District in that case, section 675.114(1) provides that an issuer "must honor a draft or demand for payment which complies with the terms of the relevant credit.”

Sea Mgmt. Serv. v. Club Sea, 512 So. 2d 1025 (Fla. 3d DCA 1987). · cites it 4× “Braun; Fidelity Nat'l Bank; § 675.114(1), Fla. Stat. (1985). An issuing bank is only required to perform the ministerial task of "laying the instruments next to one another and determining whether they precisely coincide" with those mandated by the terms of the letter of credit.”

Braun v. Intercontinental Bank, 466 So. 2d 1130 (Fla. 3d DCA 1985). · cites it 6× “§ 675.114, Fla. Stat. (1981). See Fidelity National Bank.”

Citibank, Na v. Klein, 396 So. 2d 763 (Fla. 3d DCA 1981). · cites it 2× “Rodriguez, supra , that the relationship between the issuer of an irrevocable letter of credit and the beneficiary of that letter is not that of debtor and creditor so as to give the court where the issuer is located jurisdiction of a res upon which its judgment could operate,…”

— 675.114(1) — 4 cases

Sea Mgmt. Serv. v. Club Sea, 512 So. 2d 1025 (Fla. 3d DCA 1987). “Braun; Fidelity Nat'l Bank; § 675.114(1), Fla. Stat. (1985). An issuing bank is only required to perform the ministerial task of "laying the instruments next to one another and determining whether they precisely coincide" with those mandated by the terms of the letter of credit.”

Bgh Ins. Syndicate, Inc. v. Presidential Fire & Cas., 549 So. 2d 197 (Fla. 3d DCA 1989). “Section 675.114(1), Florida Statutes (1987) specifies that an issuing bank must honor drafts or demands for payment under a letter of credit when the documents required by the letter of credit appear on their face to comply with the terms of the credit.”

Cargill, Inc. v. Sunlight Foods, Inc., 586 So. 2d 366 (Fla. 3d DCA 1991). “§ 675.114(1), Fla. Stat. (1989); see B.G.”

— 675.114(2) — 5 cases

Daiwa Prods., Inc. v. NATIONSBANK, NA, 885 So. 2d 884 (Fla. 4th DCA 2004). “The injunctions were issued under the Louisiana Revised Statutes Annotated, Title 10, section 5-114, which is identical to section 675.114. See Cromwell v. Commerce & Energy Bank of Lafayette, 450 So.”

Cargill, Inc. v. Sunlight Foods, Inc., 586 So. 2d 366 (Fla. 3d DCA 1991). “§ 675.114(1), Fla. Stat. (1989); see B.G.”

Hamilton Bank, N.A. v. Kookmin Bank, 245 F.3d 82 (2d Cir. 2001). “Fla.Stat.Ann. § 675.114 (West 1998). Moreover, an Eleventh Circuit case involving a Florida Bank confirms that fraud in the transaction and fraudulent documentation are defenses even in cases governed by the UCP.”

Banco Lavra, S.A. v. Cargil Int'l, 732 So. 2d 1086 (Fla. 3d DCA 1998). “The documents submitted for payment conformed on their face with the terms of the letter of credit, and the bank paid the beneficiary, as it was obligated to under section 675.”

— 675.114(2)(a) — 1 case

— 675.114(2)(b) — 3 cases

Cargill, Inc. v. Sunlight Foods, Inc., 586 So. 2d 366 (Fla. 3d DCA 1991). “§ 675.114(1), Fla. Stat. (1989); see B.G.”

Citibank, Na v. Klein, 396 So. 2d 763 (Fla. 3d DCA 1981). “Rodriguez, supra , that the relationship between the issuer of an irrevocable letter of credit and the beneficiary of that letter is not that of debtor and creditor so as to give the court where the issuer is located jurisdiction of a res upon which its judgment could operate,…”

— 675.114(3) — 2 cases

Braun v. Intercontinental Bank, 466 So. 2d 1130 (Fla. 3d DCA 1985). “§ 675.114, Fla. Stat. (1981). See Fidelity National Bank.”

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