7-5-114
Section 7-5-114 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...

alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-5-114.htm - 2K - Match Info - Similar pages

7-9A-102
Section 7-9A-102 Definitions and index of definitions. (a) Article 9A definitions. In
this article: (1) "Accession" means goods that are physically united with other
goods in such a manner that the identity of the original goods is not lost. (2) "Account,"
except as used in "account for," means a right to payment of a monetary obligation,
whether or not earned by performance, (i) for property that has been or is to be sold, leased,
licensed, assigned, or otherwise disposed of, (ii) for services rendered or to be rendered,
(iii) for a policy of insurance issued or to be issued, (iv) for a secondary obligation incurred
or to be incurred, (v) for energy provided or to be provided, (vi) for the use or hire of
a vessel under a charter or other contract, (vii) arising out of the use of a credit or charge
card or information contained on or for use with the card, or (viii) as winnings in a lottery
or other game of chance operated or sponsored by a State, governmental unit of a State, or...

alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-9A-102.htm - 29K - Match Info - Similar pages

7-9A-409
Section 7-9A-409 Restrictions on assignment of letter-of-credit rights ineffective.
(a) Term or law restricting assignment generally ineffective. A term in a letter of credit
or a rule of law, statute, regulation, custom, or practice applicable to the letter of credit
which prohibits, restricts, or requires the consent of an applicant, issuer, or nominated
person to a beneficiary's assignment of or creation of a security interest in a letter-of-credit
right is ineffective to the extent that the term or rule of law, statute, regulation, custom,
or practice: (1) would impair the creation, attachment, or perfection of a security interest
in the letter-of-credit right; or (2) provides that the assignment or the creation, attachment,
or perfection of the security interest may give rise to a default, breach, right of recoupment,
claim, defense, termination, right of termination, or remedy under the letter-of-credit right.
(b) Limitation on ineffectiveness under subsection (a). To the extent...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-9A-409.htm - 2K - Match Info - Similar pages

7-9A-109
Section 7-9A-109 Scope. (a) General scope of article. Except as otherwise provided in
subsections (c) and (d), this article applies to: (1) a transaction, regardless of its form,
that creates a security interest in personal property or fixtures by contract; (2) an agricultural
lien; (3) a sale of accounts, chattel paper, payment intangibles, or promissory notes; (4)
a consignment; (5) a security interest arising under Section 7-2-401, 7-2-505, 7-2-711(3),
or 7-2A-508(5), as provided in Section 7-9A-110; and (6) a security interest arising
under Section 7-4-210 or 7-5-118. (b) Security interest in secured obligation. The
application of this article to a security interest in a secured obligation is not affected
by the fact that the obligation is itself secured by a transaction or interest to which this
article does not apply. (c) Extent to which article does not apply. This article does not
apply to the extent that: (1) a statute, regulation, or treaty of the United States preempts
this...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-9A-109.htm - 4K - Match Info - Similar pages

7-5-102
Section 7-5-102 Definitions. (a) In this article: (1) "Adviser" means a person
who, at the request of the issuer, a confirmer, or another adviser, notifies, or requests
another adviser to notify, the beneficiary that a letter of credit has been issued, confirmed,
or amended. (2) "Applicant" means a person at whose request or for whose account
a letter of credit is issued. The term includes a person who requests an issuer to issue a
letter of credit on behalf of another if the person making the request undertakes an obligation
to reimburse the issuer. (3) "Beneficiary" means a person who under the terms of
a letter of credit is entitled to have its complying presentation honored. The term includes
a person to whom drawing rights have been transferred under a transferable letter of credit.
(4) "Confirmer" means a nominated person who undertakes, at the request or with
the consent of the issuer, to honor a presentation under a letter of credit issued by another.
(5) "Dishonor" of a letter...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-5-102.htm - 4K - Match Info - Similar pages

7-5-109
Section 7-5-109 Fraud and forgery. (a) If a presentation is made that appears on its
face strictly to comply with the terms and conditions of the letter of credit, but a required
document is forged or materially fraudulent, or honor of the presentation would facilitate
a material fraud by the beneficiary on the issuer or applicant: (1) the issuer shall honor
the presentation, if honor is demanded by (i) a nominated person who has given value in good
faith and without notice of forgery or material fraud, (ii) a confirmer who has honored its
confirmation in good faith, (iii) a holder in due course of a draft drawn under the letter
of credit which was taken after acceptance by the issuer or nominated person, or (iv) an assignee
of the issuer's or nominated person's deferred obligation that was taken for value and without
notice of forgery or material fraud after the obligation was incurred by the issuer or nominated
person; and (2) the issuer, acting in good faith, may honor or dishonor...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-5-109.htm - 2K - Match Info - Similar pages

7-9A-107
Section 7-9A-107 Control of letter-of-credit right. A secured party has control of a
letter-of-credit right to the extent of any right to payment or performance by the issuer
or any nominated person if the issuer or nominated person has consented to an assignment of
proceeds of the letter of credit under Section 7-5-114(c) or otherwise applicable law
or practice. (Act 2001-481, p. 647, §1.)...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-9A-107.htm - 700 bytes - Match Info - Similar pages

7-9A-203
Section 7-9A-203 Attachment and enforceability of security interest; proceeds; supporting
obligations; formal requisites. (a) Attachment. A security interest attaches to collateral
when it becomes enforceable against the debtor with respect to the collateral, unless an agreement
expressly postpones the time of attachment. (b) Enforceability. Except as otherwise provided
in subsections (c) through (i), a security interest is enforceable against the debtor and
third parties with respect to the collateral only if: (1) value has been given; (2) the debtor
has rights in the collateral or the power to transfer rights in the collateral to a secured
party; and (3) one of the following conditions is met: (A) the debtor has authenticated a
security agreement that provides a description of the collateral and, if the security interest
covers timber to be cut, a description of the land concerned; (B) the collateral is not a
certificated security and is in the possession of the secured party under...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-9A-203.htm - 4K - Match Info - Similar pages

7-5-111
Section 7-5-111 Remedies. (a) If an issuer wrongfully dishonors or repudiates its obligation
to pay money under a letter of credit before presentation, the beneficiary, successor, or
nominated person presenting on its own behalf may recover from the issuer the amount that
is the subject of the dishonor or repudiation. If the issuer's obligation under the letter
of credit is not for the payment of money, the claimant may obtain specific performance or,
at the claimant's election, recover an amount equal to the value of performance from the issuer.
In either case, the claimant may also recover incidental but not consequential damages. The
claimant is not obligated to take action to avoid damages that might be due from the issuer
under this subsection. If, although not obligated to do so, the claimant avoids damages, the
claimant's recovery from the issuer must be reduced by the amount of damages avoided. The
issuer has the burden of proving the amount of damages avoided. In the case of...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-5-111.htm - 2K - Match Info - Similar pages

7-5-107
Section 7-5-107 Confirmer, nominated person, and adviser. (a) A confirmer is directly
obligated on a letter of credit and has the rights and obligations of an issuer to the extent
of its confirmation. The confirmer also has rights against and obligations to the issuer as
if the issuer were an applicant and the confirmer had issued the letter of credit at the request
and for the account of the issuer. (b) A nominated person who is not a confirmer is not obligated
to honor or otherwise give value for a presentation. (c) A person requested to advise may
decline to act as an adviser. An adviser that is not a confirmer is not obligated to honor
or give value for a presentation. An adviser undertakes to the issuer and to the beneficiary
accurately to advise the terms of the letter of credit, confirmation, amendment, or advice
received by that person and undertakes to the beneficiary to check the apparent authenticity
of the request to advise. Even if the advice is inaccurate, the letter of...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-5-107.htm - 1K - Match Info - Similar pages