What are Wachovias procedures on assignment of proceeds?
Unlike a transfer of a letter of credit, which is governed by the desire of the applicant and issuing and advising banks, assignment of proceeds is at the discretion of the beneficiary. Under Article 39, UCP 600, the beneficiary is entitled to assign any proceeds to which he may be, or may become, entitled under such credit, in accordance with the provisions of the applicable laws. In order to assign any proceeds from a letter of credit drawing, the beneficiary must apply to the advising bank and agree, among other things, that the assignment is irrevocable. The bank that assigns the proceeds must authenticate the request, acknowledge the assignment to the assignee, mark the assignment on the original credit, and notate their records. While this document assures that the original beneficiary will not receive more than his share of a drawing, it does not guarantee payment unless documents are presented in accordance with terms and conditions and if the L/C is unconfirmed, funds are rece
