Under the law, a person has the right to dispose of his assets, and assign his interests or rights to another person, provided it is lawful.
UCP 500 Article 49 respects such rights and allows a beneficiary to assign his/er right to receive payment under the DC to another person through assignment of proceeds.
ISP 98 talks more about assignment of proceeds in Rules (not Articles) 6.06 to 6.10.
As far as ISBP and UCP 500 are concerned, in assignment of proceeds, what documents/instruments or procedures are required?
(A) To be presented to the nominated paying bank or the issuing bank? Instructions, proxy, assignment deeds, power of attorney or other documents or instruments to comply?
(B) What procedures are required? For example, should the drafts be worded differently or should the draft be endorsed by the assignee?
(C) Who is the payee in the drafts?
(D) Can the assignee give instructions to the nominated paying bank or the issuing bank directly to assign the proceeds of the DC drawing to its own account?
(E) If this is allowed, then what documents and procedures are required?
(F) In a nutshell, do the conditions specified in ISP 98 sub Rule 6.08 also apply to UCP 500 assignment of proceeds?
We expect lawyers or bankers who are familiar with the local laws on assignment of proceeds to contribute so that all of us can learn from their own experiences.
We can see that legislations on bills of exchange (such as drafts) are different across countries. So we can imagine that the local legislations on assignment of proceeds may be more complex than what we have thought it to be.
[edited 11/23/02 3:23:07 PM]
[edited 12/3/02 5:27:49 PM by sean (Moderator)]