2025 Session
Last amended: 2000 session
§ 336.9-107 — Control of Letter of Credit Right
Plain-Language Summary
Control of a letter-of-credit right is obtained when the issuer or nominated person consents to assignment of proceeds.
336.9-107 2000 c 399 art 1 s 140
336.9-107 CONTROL OF LETTER OF CREDIT RIGHT.
A secured party has control of a letter of credit right to the extent of any right to payment or performance by the issuer or any nominated person if the issuer or nominated person has consented to an assignment of proceeds of the letter of credit under section 336.5-114(c) or otherwise applicable law or practice.
History:
History: History:
2000 c 399 art 1 s 7
Practical Notes
To take a security interest in letter of credit proceeds, the lender needs the issuing bank’s consent.