Ohio Code § 1305.13

§ 1305.13.

(A) As used in this section, “ proceeds of a letter of credit ” means the cash, check, accepted draft, or other item of value paid or delivered

upon honor or giving of value by the issuer or any nominated person under the letter

of credit.  The term does not include a beneficiary's drawing rights or documents presented

by the beneficiary. (B) A beneficiary may assign its right to part or all of the proceeds of a letter of

credit.  The beneficiary may do so before presentation as a present assignment of its right

to receive proceeds contingent upon its compliance with the terms and conditions of

the letter of credit. (C) An issuer or nominated person need not recognize an assignment of proceeds of a letter

of credit until it consents to the assignment. (D) An issuer or nominated person has no obligation to give or withhold its consent to

an assignment of proceeds of a letter of credit, but consent may not be unreasonably

withheld if the assignee possesses and exhibits the letter of credit and presentation

of the letter of credit is a condition to honor. (E) Rights of a transferee beneficiary or nominated person are independent of the beneficiary's

assignment of the proceeds of a letter of credit and are superior to the assignee's

right to the proceeds. (F) Neither the rights recognized by this section between an assignee and an issuer,

transferee beneficiary, or nominated person nor the issuer's or nominated person's

payment of proceeds to an assignee or a third person affect the rights between the

assignee and any person other than the issuer, transferee beneficiary, or nominated

person.  The mode of creating and perfecting a security interest in or granting an assignment

of a beneficiary's rights to proceeds is governed by Chapter 1309. of the Revised

Code or other law.  Against persons other than the issuer, transferee beneficiary, or nominated person,

the rights and obligations arising upon the creation of a security interest or other

assignment of a beneficiary's right to proceeds and its perfection are governed by

Chapter 1309. of the Revised Code or other law.