Hello
Could you help me with this one:
Does a nominated bank, which has negotiated docs under an LC avialable by deferred payment, entitled to assign its reimbursement claim to, say, a forfeiting company?
UCP 600 is silent on this issue, and as Article 7(c) says that an issuing bank’s undertaking to reimburse a nominated bank is independent of the issuing bank’s undertaking to the beneficiary, my guess is such an assignment is not impossible, but I am wondering, as this is my first experience with LCs so far.
Thanx
Not impossible
Hi !
Although UCP600 Art 39 is concerning the right of beneficiary to assign the proceeds, it says nothing about the transfer of the title. It is because the assignment of proceeds is outside L/C's scope. Under the similar rationale, the negotiating bank selling their claims right to another party is also outside L/C's scope. However, according to the spirit of Art 39, it would not affect the undertaking of issuing bank whoever the assignor or assignee are.
Hope it may help!
V.V.
Assignment is not impossible
But as the UCPs are silent about such assignments, you would have to pay attention to national laws, which are very different and sometimes surprising.
For example, some laws ask for a public notary to legally effect assignments and some others only ask for a notification of the debtor.
Of course - do we always need legally binding assignments ;-)) ? There might be much more tension without ;-0
All the best
Sebi
VV, thank you
VV, thank you