Okla. Stat. » Title 12A — UNIFORM COMMERCIAL CODE
Oklahoma Statutes

Okla. Stat. tit. 12A, § 5-114 (2026)

Assignment of Proceeds

✓ laws through the 2025 session (checked Sept. 2026)
Find cases: SyfertCases citing this section OK-LEGoklegislature.gov JustiaOkla. Stat. CornellLII Search CasesGoogle Scholar

Assignment of Proceeds. (a) In this section, "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. (b) 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. (c) An issuer or nominated person need not recognize an assignment of proceeds of a letter of credit until it consents to the assignment. (d) 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.

(e) 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. (f) 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 Article 9 of this title 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 Article 9 of this title or other law. Added by Laws 1961, p. 135, § 5-114. Amended by Laws 1984, c. 76, § 2, eff. Nov. 1, 1984; Laws 1995, c. 242, § 55, eff. Feb. 1, 1996; Laws 1996, c. 56, § 13, eff. Jan. 1, 1997.

Notes of Decisions
Cited in 4 cases, 1990–1995 · leading case: First State Bank v. Diamond Plastics Corp., 891 P.2d 1262 (Okla. 1995).
Sort: Relevance Newest Treatment
First State Bank v. Diamond Plastics Corp., 891 P.2d 1262 (Okla. 1995). · cites it 2× “Title 12A O.S.Supp. 1984, § 5-114, provides: "(1) An issuer must honor a draft or demand for payment which complies with the terms of the relevant credit regardless of whether the goods or documents conform to the underlying contract for sale or other contract between the…”
CCF, Inc. v. First Nat'l Bank & Trust Co. (In re Slamans), 69 F.3d 468 (10th Cir. 1995). · cites it 3× “" Okla.Stat.Ann. tit. 12A, § 5-114(1) (emphasis added).”
Ward Petroleum Corp. v. Fed. Deposit Ins., 903 F.2d 1297 (10th Cir. 1990). · cites it 3× “” Okla.Stat.Ann. tit. 12A, § 5-114 Okla. comment 1.”
Centrifugal Casting Mach. Co. v. Am. Bank & Trust Co., 966 F.2d 1348 (10th Cir. 1992). · cites it 3× “at 1299; Okla. Stat.Ann. tit. 12A, § 5-114 Okla. comment (1); even though the insolvency of the account party renders reimbursement impossible, see Wood v.”
Okla. Stat. tit. 12A, § 5-114(1): 2 cases
CCF, Inc. v. First Nat'l Bank & Trust Co. (In re Slamans), 69 F.3d 468 (10th Cir. 1995). “" Okla.Stat.Ann. tit. 12A, § 5-114(1) (emphasis added).”
Ward Petroleum Corp. v. Fed. Deposit Ins., 903 F.2d 1297 (10th Cir. 1990). “” Okla.Stat.Ann. tit. 12A, § 5-114 Okla. comment 1.”
Okla. Stat. tit. 12A, § 5-114(2): 2 cases
Ward Petroleum Corp. v. Fed. Deposit Ins., 903 F.2d 1297 (10th Cir. 1990). “” Okla.Stat.Ann. tit. 12A, § 5-114 Okla. comment 1.”
Centrifugal Casting Mach. Co. v. Am. Bank & Trust Co., 966 F.2d 1348 (10th Cir. 1992). “at 1299; Okla. Stat.Ann. tit. 12A, § 5-114 Okla. comment (1); even though the insolvency of the account party renders reimbursement impossible, see Wood v.”
Okla. Stat. tit. 12A, § 5-114(3): 2 cases
CCF, Inc. v. First Nat'l Bank & Trust Co. (In re Slamans), 69 F.3d 468 (10th Cir. 1995). “" Okla.Stat.Ann. tit. 12A, § 5-114(1) (emphasis added).”
Centrifugal Casting Mach. Co. v. Am. Bank & Trust Co., 966 F.2d 1348 (10th Cir. 1992). “at 1299; Okla. Stat.Ann. tit. 12A, § 5-114 Okla. comment (1); even though the insolvency of the account party renders reimbursement impossible, see Wood v.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.