Assignment of proceeds

[MMoon]

Hi Experts,

I would like to receive your opinion on the following issues: the obligations or the best practice of issuing bank when they receive a Notice (from Assignee or Negotiating bank) of Assignment of proceeds under L/C. What are the risks issuing bank may face when they can't follow requirements in the Notice such as acknowledge receipt of Notice or remit proceeds to the Assignee?

Your advice is highly appreciated.

[cristiand969]

The risks are linked to the applicable law. Please review the local law regarding obligation of the debtor after his is notified with an assignment. If the assignee, other than negotiating bank ask for taking into consideration such assignment, you may ask for a satisfactory proof of the beneficiary assignment of proceeds.

[MMoon]

Dear Cristian,

Thank you for your advice. The local law you mentioned here is the law where the assignment takes place, right? We will try to study the national law of the country from which we usually receive the Notice.

Best regards,

[MMoon]

Dear Cristian,

Thank you for your advice.

Best regards