The 2023 Florida Statutes (including Special Session C)

Title XXXIX
COMMERCIAL RELATIONS

Chapter 675
UNIFORM COMMERCIAL CODE: LETTERS OF CREDIT

View Entire Chapter

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

F.S. 675.114 on Casetext

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 from cite.case.law:

DAIWA PRODUCTS, INC. v. NATIONSBANK, N. A., 885 So. 2d 884 (Fla. Dist. Ct. App. 2004)

. . . See § 675.114(2)(b), Fla. . . . If United Mizrahi was a holder in due course, then it was entitled to payment under section 675.114(2 . . . Section 675.114(2)(a) adopts the definition of “holder in due course” contained at section 673.3021, . . . Daiwa obtained the preliminary injunction authorized by section 675.114(2). . . . When a preliminary injunction under section 675.114(2) prevents payment under a letter of credit, the . . .

HAMILTON BANK, N. A. v. KOOKMIN BANK, 245 F.3d 82 (2d Cir. 2001)

. . . Fla.Stat.Ann. § 675.114 (West 1998). . . . However, Section 675.114 and Harris leave open two important questions. . . . First, former section 675.114 does not address the time period in which an issuing bank must make an . . . See Fla.Stat.Ann. § 675.114(2) (indicating that fraud exception applies “when documents appear on their . . . However, Section 675.114 applies only to documents required by a letter of credit. . . .

HAMILTON BANK, N. A. v. KOOKMIN BANK,, 44 F. Supp. 2d 653 (S.D.N.Y. 1999)

. . . . § 675.114(2) (1998). . . .

BANCO LAVRA, S. A. v. CARGIL INTERNATIONAL,, 732 So. 2d 1086 (Fla. Dist. Ct. App. 1998)

. . . documents, the applicant may seek to enjoin payment on its credit prior to honoring the letter of credit § 675.114 . . .

CARGILL, INCORPORATED, v. SUNLIGHT FOODS, INCORPORATED,, 586 So. 2d 366 (Fla. Dist. Ct. App. 1991)

. . . . § 675.114(1), Fla.Stat. (1989); see B.G.H. Insurance Syndicate, Inc. v. . . . apparently conforming documents are “forged or fraudulent or there is fraud in the transaction.” § 675.114 . . . fraud is being perpetrated, the trial court may enjoin the bank from honoring the letter of credit. § 675.114 . . . It could be argued that section 675.114(2)(b) authorizes injunctive relief only in the circumstances . . .

REPUBLIC NATIONAL BANK OF MIAMI, a v. FIDELITY AND DEPOSIT COMPANY OF MARYLAND, a, 894 F.2d 1255 (11th Cir. 1990)

. . . . § 675.114(1). . . . See Fla.Stat. § 675.114(3). . . . however, the bank has the right to honor the letter of credit if it chooses to do so, see FIa.Stat. § 675.114 . . . honor the letter if presented by another bank which has status as a holder in due course, see id. § 675.114 . . . See id. § 675.114. . . .

B. G. H. INSURANCE SYNDICATE, INC. v. PRESIDENTIAL FIRE CASUALTY COMPANY,, 549 So. 2d 197 (Fla. Dist. Ct. App. 1989)

. . . Section 675.114(1), Florida Statutes (1987) specifies that an issuing bank must honor drafts or demands . . . payment occurs when a required document is “forged or fraudulent or there is fraud in the transaction.” § 675.114 . . .

SEA MANAGEMENT SERVICE, LTD. a v. CLUB SEA, INC. a, 512 So. 2d 1025 (Fla. Dist. Ct. App. 1987)

. . . Braun; Fidelity Nat’l Bank; § 675.114(1), Fla.Stat. (1985). . . . Fidelity Nat’l Bank, 371 So.2d at 548; accord Braun, 466 So.2d at 1130; see § 675.114(1), Fla.Stat. ( . . .

BRAUN d b a v. INTERCONTINENTAL BANK,, 466 So. 2d 1130 (Fla. Dist. Ct. App. 1985)

. . . . § 675.114, Fla.Stat. (1981). See Fidelity National Bank. . . . See § 675.114, Fla.Stat. (1981). . . . immediate reimbursement through liquidation of the certificate of deposit Braun posted as collateral. § 675.114 . . .