{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.5A-114.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.5A-114.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.5A-114.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.5A-114.html"}],"law_id":72104,"edition_id":1,"section_id":72104,"structure_id":14537,"section_number":"8.5A-114","catch_line":"Assignment of proceeds","history":"1997, c. 343.","full_text":"a\n\nIn 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\n\nA 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\n\nAn issuer or nominated person need not recognize an assignment of proceeds of a letter of credit until it consents to the assignment.d\n\nAn 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\n\nRights 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\n\nNeither 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 Title 8.9A 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 Title 8.9A or other law.","order_by":null,"text":{"0":{"id":259820,"text":"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.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":259821,"text":"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.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"2":{"id":259822,"text":"An issuer or nominated person need not recognize an assignment of proceeds of a letter of credit until it consents to the assignment.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"3":{"id":259823,"text":"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.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c","next_prefix":"e"},"4":{"id":259824,"text":"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.","type":"section","prefixes":["e"],"prefix":"e","entire_prefix":"e","prefix_anchor":"e","level":1,"prior_prefix":"d","next_prefix":"f"},"5":{"id":259825,"text":"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 Title 8.9A 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 Title 8.9A or other law.","type":"section","prefixes":["f"],"prefix":"f","entire_prefix":"f","prefix_anchor":"f","level":1,"prior_prefix":"e"}},"ancestry":[{"id":14537,"edition_id":1,"name":"Uniform Commercial Code \u2014 Letters of Credit","identifier":"8.5A","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:48:34","date_modified":"2026-06-26 03:48:34","permalink":{"id":283351,"object_type":"structure","relational_id":14537,"identifier":"8.5A","token":"8.5A","url":"\/8.5A\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":68137,"structure_id":14537,"section_number":"8.5A-101","catch_line":"Short title","url":"\/8.5A-101\/","token":"8.5A\/8.5A-101","metadata":false},{"id":68166,"structure_id":14537,"section_number":"8.5A-102","catch_line":"Definitions","url":"\/8.5A-102\/","token":"8.5A\/8.5A-102","metadata":false},{"id":59884,"structure_id":14537,"section_number":"8.5A-103","catch_line":"Scope","url":"\/8.5A-103\/","token":"8.5A\/8.5A-103","metadata":false},{"id":62564,"structure_id":14537,"section_number":"8.5A-104","catch_line":"Formal requirements","url":"\/8.5A-104\/","token":"8.5A\/8.5A-104","metadata":false},{"id":78674,"structure_id":14537,"section_number":"8.5A-105","catch_line":"Consideration","url":"\/8.5A-105\/","token":"8.5A\/8.5A-105","metadata":{"court_decisions":""}},{"id":58998,"structure_id":14537,"section_number":"8.5A-106","catch_line":"Issuance, amendment, cancellation, and duration","url":"\/8.5A-106\/","token":"8.5A\/8.5A-106","metadata":false},{"id":78720,"structure_id":14537,"section_number":"8.5A-107","catch_line":"Confirmer, nominated person, and adviser","url":"\/8.5A-107\/","token":"8.5A\/8.5A-107","metadata":false},{"id":84859,"structure_id":14537,"section_number":"8.5A-108","catch_line":"Issuer's rights and obligations","url":"\/8.5A-108\/","token":"8.5A\/8.5A-108","metadata":{"court_decisions":""}},{"id":68535,"structure_id":14537,"section_number":"8.5A-109","catch_line":"Fraud and forgery","url":"\/8.5A-109\/","token":"8.5A\/8.5A-109","metadata":false},{"id":86292,"structure_id":14537,"section_number":"8.5A-110","catch_line":"Warranties","url":"\/8.5A-110\/","token":"8.5A\/8.5A-110","metadata":false},{"id":80661,"structure_id":14537,"section_number":"8.5A-111","catch_line":"Remedies","url":"\/8.5A-111\/","token":"8.5A\/8.5A-111","metadata":false},{"id":55987,"structure_id":14537,"section_number":"8.5A-112","catch_line":"Transfer of letter of credit","url":"\/8.5A-112\/","token":"8.5A\/8.5A-112","metadata":{"court_decisions":""}},{"id":63412,"structure_id":14537,"section_number":"8.5A-113","catch_line":"Transfer by operation of law","url":"\/8.5A-113\/","token":"8.5A\/8.5A-113","metadata":false},{"id":72104,"structure_id":14537,"section_number":"8.5A-114","catch_line":"Assignment of proceeds","url":"\/8.5A-114\/","token":"8.5A\/8.5A-114","metadata":false},{"id":66415,"structure_id":14537,"section_number":"8.5A-115","catch_line":"Statute of limitations","url":"\/8.5A-115\/","token":"8.5A\/8.5A-115","metadata":false},{"id":78841,"structure_id":14537,"section_number":"8.5A-116","catch_line":"Choice of law and forum","url":"\/8.5A-116\/","token":"8.5A\/8.5A-116","metadata":false},{"id":61433,"structure_id":14537,"section_number":"8.5A-117","catch_line":"Subrogation of issuer, applicant, and nominated person","url":"\/8.5A-117\/","token":"8.5A\/8.5A-117","metadata":{"court_decisions":""}},{"id":75081,"structure_id":14537,"section_number":"8.5A-117.1","catch_line":"Security interest of issuer or nominated person","url":"\/8.5A-117.1\/","token":"8.5A\/8.5A-117.1","metadata":false},{"id":65323,"structure_id":14537,"section_number":"8.5A-118","catch_line":"Applicability","url":"\/8.5A-118\/","token":"8.5A\/8.5A-118","metadata":false}],"previous_section":{"id":63412,"structure_id":14537,"section_number":"8.5A-113","catch_line":"Transfer by operation of law","url":"\/8.5A-113\/","token":"8.5A\/8.5A-113","metadata":false},"next_section":{"id":66415,"structure_id":14537,"section_number":"8.5A-115","catch_line":"Statute of limitations","url":"\/8.5A-115\/","token":"8.5A\/8.5A-115","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.5A-114\/","history_text":"

This law was first created in 1997. The record of its establishment is cataloged in chapter 343<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":59884,"section_number":"8.5A-103","catch_line":"Scope","order_by":null,"url":"\/8.5A-103\/"},{"id":58431,"section_number":"8.9A-102","catch_line":"Definitions and index of definitions","order_by":null,"url":"\/8.9A-102\/"},{"id":58690,"section_number":"8.9A-107","catch_line":"Control of letter-of-credit right","order_by":null,"url":"\/8.9A-107\/"}],"refers_to":false,"permalink":{"id":283405,"object_type":"law","relational_id":72104,"identifier":"8.5A-114","token":"8.5A\/8.5A-114","url":"\/8.5A-114\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.5A-114\/","token":"8.5A\/8.5A-114","dublin_core":{"Title":"Assignment of proceeds","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.5A-114","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> In this section, “proceeds of a letter of credit<\/span>” 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. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> A beneficiary may assign its right to part or all of the proceeds of a letter of credit<\/span>. 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. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> An issuer or nominated person need not recognize an assignment of proceeds of a letter of credit<\/span> until it consents to the assignment. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> An issuer or nominated person has no obligation to give or withhold its consent to an assignment of proceeds of a letter of credit<\/span>, 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. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/span> Rights of a transferee beneficiary or nominated person are independent of the beneficiary’s assignment of the proceeds of a letter of credit<\/span> and are superior to the assignee’s right to the proceeds. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

f.<\/span> 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 Title 8.9A or other law<\/span>. 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 Title 8.9A or other law<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nASSIGNMENT OF PROCEEDS (\u00a7 8.5A-114)\n\na. In this section, “proceeds of a letter of credit” means the cash,\ncheck, accepted draft, or other item of value paid or delivered upon honor or\ngiving of value by the issuer or any nominated person under the letter of\ncredit. The term does not include a beneficiary’s drawing rights or\ndocuments presented by the beneficiary.\n\nb. A beneficiary may assign its right to part or all of the proceeds of a letter\nof credit. The beneficiary may do so before presentation as a present assignment\nof its right to receive proceeds contingent upon its compliance with the terms\nand conditions of the letter of credit.\n\nc. An issuer or nominated person need not recognize an assignment of proceeds of\na letter of credit until it consents to the assignment.\n\nd. An issuer or nominated person has no obligation to give or withhold its\nconsent to an assignment of proceeds of a letter of credit, but consent may not\nbe unreasonably withheld if the assignee possesses and exhibits the letter of\ncredit and presentation of the letter of credit is a condition to honor.\n\ne. Rights of a transferee beneficiary or nominated person are independent of the\nbeneficiary’s assignment of the proceeds of a letter of credit and are\nsuperior to the assignee’s right to the proceeds.\n\nf. Neither the rights recognized by this section between an assignee and an\nissuer, transferee beneficiary, or nominated person nor the issuer’s or\nnominated person’s payment of proceeds to an assignee or a third person\naffect the rights between the assignee and any person other than the issuer,\ntransferee beneficiary, or nominated person. The mode of creating and perfecting\na security interest in or granting an assignment of a beneficiary’s rights\nto proceeds is governed by Title 8.9A or other law. Against persons other than\nthe issuer, transferee beneficiary, or nominated person, the rights and\nobligations arising upon the creation of a security interest or other assignment\nof a beneficiary’s right to proceeds and its perfection are governed by\nTitle 8.9A or other law.\n\nHISTORY: 1997, c. 343.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}