New Jersey § 12a:5-114
Full text of New Jersey New Jersey Statutes § 12a:5-114, with citation guidance and answers to common questions.
§ 12a:5-114.
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 12A:9-101 et seq. 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
12A:9-101 et seq. or other law.
Frequently Asked Questions About New Jersey § 12a:5-114
What does New Jersey Statutes § 12a:5-114 cover?
Section 12a:5-114 is part of the New Jersey Statutes, the codified statutory law of New Jersey. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite New Jersey § 12a:5-114?
A common citation format is "New Jersey Statutes § 12a:5-114" (New Jersey). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of New Jersey law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the New Jersey official source linked on this page or consult a licensed New Jersey attorney.
How does New Jersey § 12a:5-114 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in New Jersey can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in New Jersey.