Assignment Of Proceeds


DEFINITION of 'Assignment Of Proceeds'

A document transferring all or part of the proceeds from a letter of credit to a third party beneficiary. To receive an assignment of proceeds, the beneficiary of a letter of credit is required to submit, in writing, a request to the bank to assign the funds to a different person or company.

BREAKING DOWN 'Assignment Of Proceeds'

Once approved, the bank will disperse the funds accordingly, pending the fulfillment of any requirements set forth in the letter of credit. However, if the principal party does not meet the obligations outlined in the letter of credit, no assignment will take place.

  1. Third Party Beneficiary

    A person who will benefit from a contract made between two other ...
  2. Assignment Method

    A method of allocating organizational resources. The assignment ...
  3. Assignment

    1. The transfer of an individual's rights or property to another ...
  4. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a ...
  5. Standby Letter of Credit - SLOC

    A guarantee of payment issued by a bank on behalf of a client ...
  6. Bank Guarantee

    A guarantee from a lending institution ensuring that the liabilities ...
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