§12A-5-114.

§12A-5-114.
   
   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.