Model of Assignment of Proceeds Within The Framework of An LC

[ANGE]

Hi every body,

I would like to get a model of assignment of proceeds within the framework of an L/C. Not the printed form that has to be signed by the beneficiary of the L/C (the assignor) and given to the bank, but the document sent by the bank to the assignee in order to inform him once assignment has been signed by the assignee.

Is there any body who can help??
Ange

[nraajesh]

Hello Ange

Guess you are asking for the format of letter sent by the bank to the assignee. There is no specific format as each bank follows different standards.

But all banks in common follow some standard clauses like specified below:

Hello XXX (name of the assignee),

At the request of XXX (name of the assignor) we hereby assign a sum of XXXX (amount) from the proceeds drawn under the letter of credit no. XXXXX to you....

Pls be informed that this is only an assignment of proceeds and not assignment of any rights under the LC.

The proceeds would be paid to you as per your instructions, subject to payment of previous assignments if any....

Regards,

Hope this clarifies.

Regards,

Rajesh

[picant]

Hi Pals,

In Italy we have a long letter to be send to an assignee, quoting different Civil Code articles and specially limiting liability of the bank, specially if not conirming.
However the assignment is normally a moral undertaking than a legal one-
Other comments appreciated
Ciao