assignment of proceeds bank

• Search Search Please fill out this field.
• Corporate Finance
• Corporate Finance Basics

Assignment of Proceeds: Meaning, Pros and Cons, Example

Diane Costagliola is a researcher, librarian, instructor, and writer who has published articles on personal finance, home buying, and foreclosure.

Investopedia / Jiaqi Zhou

What Is an Assignment of Proceeds?

An assignment of proceeds occurs when a beneficiary transfers all or part of the proceeds from a letter of credit to a third-party beneficiary . Assigning the proceeds from a letter of credit can be utilized in many types of scenarios, such as to pay suppliers or vendors in a business transaction or to settle other debts.

Key Takeaways

• An assignment of proceeds can be used to redirect funds from a line of credit to a third party.
• An assignment of proceeds must be approved by the financial institution that granted the line of credit following a request and fulfillment of any obligations by the original beneficiary.
• A benefit of this type of transaction is the ability to redirect only a portion of the proceeds, in which case both the original beneficiary and third party can access the same letter of credit.
• A drawback of this type of transaction is that the original beneficiary is still responsible for fulfilling all requirements under the letter of credit, even when the funds are redirected to the third party.
• This type of transaction is used in a number of circumstances, such as when paying suppliers or vendors, or when settling outstanding debts.

Understanding an Assignment of Proceeds

A letter of credit is a letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make a payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase. The original beneficiary, the named party who is entitled to receive the proceeds from a letter of credit, may choose to have them delivered to a third party instead, through an "assignment of proceeds."

Due to the nature of international dealings, including factors such as distance, differing laws in each country, and difficulty in knowing each party personally, the use of letters of credit has become a very important aspect of international trade.

In order to process an assignment of proceeds, the original beneficiary of the letter of credit must submit a request to the bank or other financial institution issuing the letter of credit requesting to assign the funds to a different individual or company. The assignment of proceeds will need to be approved by the financial institution once it is submitted, pending the fulfillment of any requirements set forth in the letter of credit.

If the original beneficiary does not meet the obligations outlined in the letter of credit, no assignment will take place. Once approved, the bank or other entity will release the money to the specified third party to be drawn upon at will.

Advantages and Disadvantages of an Assignment of Proceeds

The main benefit of an assignment of proceeds is that the original beneficiary has the ability to assign all or just a portion of the letter of credit to the third party. The original beneficiary will retain access to any portion of the proceeds not redirected to the third party. This allows both entities to make use of the same letter of credit when necessary.

This benefit must be weighed against the potential drawback of this type of transaction. When an assignment of proceeds takes place, the financial institution is not contracting directly with the third-party beneficiary. It is only acting as an agent in supplying the funds to the third party. The original beneficiary is still responsible for completing any and all requirements under the letter of credit.

Example of an Assignment of Proceeds

Assume XYZ Customer, in Brazil, is purchasing widgets from ABC Manufacturer, in the United States. In order to sign off on the deal, ABC Manufacturer requires that XYZ Customer obtains a letter of credit from a bank to mitigate the risk that XYZ may not pay ABC for the widgets once ABC has shipped them out of the country.

At this point, ABC Manufacturer is able to request that a portion of these funds be redirected to DEF Supplier, whom ABC still owes money for parts used in making the widgets. Even though a portion of the funds has been redirected to DEF Supplier, ABC Manufacturer still has to fulfill its obligations under the letter of credit, such as shipping out the widgets to XYZ.

• Terms of Service
• Editorial Policy
• Privacy Policy

Assignment of Proceeds: Definition, Process, and Considerations

Last updated 03/20/2024 by

Fact checked by

What is an assignment of proceeds?

Understanding an assignment of proceeds, example of an assignment of proceeds.

• Flexibility in redirecting funds
• Ability to assign partial proceeds
• Original beneficiary remains responsible for obligations under the letter of credit
• Financial institution only acts as an agent in supplying funds to the third party

Frequently asked questions

How does an assignment of proceeds impact the original beneficiary’s obligations under the letter of credit, can multiple assignments of proceeds be made for the same letter of credit, is an assignment of proceeds revocable, key takeaways.

• An assignment of proceeds allows for the transfer of funds from a letter of credit to a third-party beneficiary, offering flexibility in financial transactions.
• The original beneficiary retains responsibility for fulfilling obligations under the letter of credit, despite fund redirection.
• Approval from the issuing financial institution is required for an assignment of proceeds to be executed.

Show Article Sources

You might also like.

• Join Newsletter

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy , ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What Is an Assignment of Proceeds?

An assignment of proceeds is a financial document that is used to redirect all or a portion of a currently active letter of credit from the current beneficiary to a third party beneficiary. This type of activity can only take place if the current beneficiary is willing to agree to the arrangement, and files the necessary paperwork with the institution that extends the letter of credit to allow for this redirection of proceeds. Once the institution is satisfied with the paperwork, and the principal party involved with the letter of credit continues to comply with all the terms and provisions associated with that letter of credit, the portion transferred to the third party can be drawn upon at will.

One of the benefits of an assignment of proceeds is that the principal party still retains access to any portion of the proceeds not redirected to the third party, effectively allowing both entities to make use of the same letter of credit when necessary. For example, a parent company may be the principal party but choose to assign a portion of the proceeds from the letter of credit to a subsidiary as a means of providing backup funding for some project that the subsidiary is undertaking. This effectively creates a financial cushion that the subsidiary can draw upon if needed, all under the umbrella of the parent.

An assignment of proceeds can also occur between individuals. One individual serves as the principal party in the arrangement, and may choose to designate a portion of the proceeds to two other individuals as a means of creating some sort of support mechanism for those parties. For example, a parent may secure the letter of credit and allocate a portion of the proceeds to two children who are of legal age to participate in the arrangement. As long as the original beneficiary provides the necessary paperwork to divert a portion of the proceeds to the third party beneficiary, all parties can benefit from the assignment.

While an assignment of proceeds is an excellent and straightforward way to transfer or assign a portion of proceeds to a third party, it is important to note that the principal party remains responsible for the proceeds drawn on that letter of credit. While the beneficiaries are free to repay any amount borrowed on the credit, in the event that they fail to do so the principal party is obligated to settle the debt. For this reason, care should be taken to evaluate the circumstances closely before choosing to enact an assignment of proceeds and make sure each party is aware of his or her responsibilities in terms of repayment.

• https://www.investopedia.com/terms/a/assignment_of_proceeds.asp

Editors' Picks

Related Articles

• What is an Assignment of Rents?

Our latest articles, guides, and more, delivered daily.

§ 5-114. Assignment of Proceeds.

(a) 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 Article 9 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 Article 9 or other law.

Assignment of Proceeds

Assignment of Proceeds . It is a legal mechanism by which the beneficiary of a letter of credit may pledge the proceeds of future drawings to a third party. Assigning proceeds involves giving the letter of credit to a financial institution, which holds the letter of credit until drawn upon, along with irrevocable instructions to the financial institution to disburse proceeds,when generated, in a specified way (such as pay 40 percent of each drawing to XXX Corporation). The financial institution acknowledges the assignment to the assignee. It does not have any obligation to pay any funds to the assignee unless the letter of credit is drawn upon by the beneficiary and payment is received from the issuing or confirming financial institution. An assignment of proceeds is not an assignment or transfer of the letter of credit and the assignee acquires no rights to perform under the letter of credit in order to generate funds.

• Supply Chain Finance

• Open Risk Academy
• Open Risk Commons
• Open Risk Models
• Read our Blog
• Terms of Service
• Accessibility
• Privacy Policy

• Browse all publications
• Take a free trial
• I would like to subscribe
• Manage your newsletters

Assignment Of Letters Of Credit And Proceeds

Related sections.

• Clarks' Secured Transactions Monthly

Already have access? Click here to login

Get instant access to the one-stop news source for business lawyers, register for a complimentary 14-day trial with access to all sections and newsletters..

Email (NOTE: Free email domains not supported)

Postal code *

PLEASE NOTE: A verification email will be sent to your address before you can access your trial.

Password (at least 8 characters required)

Confirm Password

Phone Number (###-###-####)

By submitting, you agree to LexisNexis Terms of Use LexisNexis, a division of RELX Inc., may contact you in your professional capacity with information about our other products, services and events that we believe may be of interest. You can manage your communication preferences via our Preference Center . You can learn more about how we handle your personal data and your rights by reviewing our Privacy Policy .

Already have access?

• Password: Forgot your password?
• Remember login

Sign up for our Clarks' Secured Transactions Monthly newsletter

You must correct or enter the following before you can sign up:.

Mealey's takes your privacy seriously. Please see our Privacy Policy .

• Return to Main Site

888-890-7447

Passages The International Trade Blog

Two alternatives to a back-to-back letter of credit.

In one of   my previous articles , I wrote about back-to-back letters of credit (LC) and how banks, particularly in the United States, just don’t have an appetite for that type of business. This article is going to discuss two alternative to using back-to-back LCs.

A Transferrable Letter of Credit

Let’s just assume that we have a buyer, a broker or middle man, and a manufacturer. At the request of the broker, the buyer applies for a letter of credit. The broker has instructed the buyer that the letter of credit must be transferable. Hopefully the buyer follows these instructions and indicates on the LC application that the LC must be transferable.

The issuing bank, following the instructions of their customer the buyer, issues the LC that contains the clause: “This letter of credit is transferable.” Just what does this mean, and how does it work?

When a letter of credit is transferable, the original or first beneficiary is allowed to transfer all or a part of the value of the letter of credit to a third party, otherwise known as the second beneficiary. In our example mentioned above, the beneficiary is a broker, and they now have the ability to transfer either all or a part of the value of the letter of credit to the actual manufacturer of the goods and can do so without using any of their own line of credit.

The transferring bank, which typically would be either the issuing or advising bank, will actually issue a Transferred Letter of Credit (TLC) and advise it to the second beneficiary. The TLC will look identical to the original LC, with a few exceptions. If the original LC required four documents—a bill of lading, commercial invoice, packing list and certificate of origin—the transferred LC will also contain those same documents and only those same documents.

There are a few things that can differ between the two credits:

• the unit price if there is one,
• the expiration date,
• the period for presentation of documents,
• the shipment period, and
• The percentage of insurance coverage if required by the original LC.

In addition, the applicant on the TLC may be shown as the first beneficiary.

If the entire value of the original LC is transferred to the second beneficiary, one could assume that some type of payment was made directly to the original/first beneficiary to compensate them for the transaction. If only a partial transfer was made to the second beneficiary, the original beneficiary retains the right to present their invoice and draft to the bank at the time the second beneficiary is making their document presentation.

The second beneficiary (in our example, the manufacturer) now holds a Transferable Letter of Credit and can anticipate payment if and when they present compliant documents. The second beneficiary is responsible for making the shipment, following the shipping instructions contained in the TLC, and for presenting the required documents to the bank for payment. They are very much in control of the transaction.

Once it is determined that the documents comply, the second beneficiary will receive payment for the value of their invoice less any banking charges. In the event of a partial transfer, the original beneficiary will receive payment for the difference between their invoice and the second beneficiary’s invoice.

Remember, the second beneficiary has a lot of control. If the shipping documents they present have discrepancies, payment could be refused. Maybe even greater danger, when the second beneficiary is loading the crate and preparing for shipment, they could include a copy of their invoice with a notation that for future shipments please contact them directly, thus cutting the first beneficiary out of any future dealings. This appears to be the perfect solution for a three-party transaction, or is it?

An Assignment of Proceeds

Again, let’s assume that we have a buyer, a broker/middleman, and a supplier/manufacturer. At the request of the broker, a buyer applies for a letter of credit, but this time there is no mention of the letter of credit needing to be transferable. The letter of credit is issued, sent to the advising bank who in turn advises it to the beneficiary, also known as the broker or middle man.

The beneficiary knows that their supplier wants some type of assurance that they will be paid, but the beneficiary wants to maintain a maximum amount of control over the transaction. An Assignment of Proceeds might just be the answer.

Once the letter of credit is received, the beneficiary would approach their bank with the original letter of credit in hand and ask that a specific value of the original letter of credit be assigned to the supplier. For example, if the LC was issued for $45,000, the request for the assignment might be $30,000.

The bank will require the original letter of credit be presented along with the written request for the assignment. The bank needs the original LC so it can endorse the backside of the LC indicating that an assignment has been made to the named party and the value of the assignment. Remember, most letters of credit are freely negotiable, meaning that the beneficiary could present documents to any bank. By endorsing the LC, any bank that might receive documents will know that an assignment has been made.

Once the endorsement is taken care of, the bank will issue a document or letter titled Assignment of Proceeds addressed, in this case, to the supplier. The content of this document will indicate that an assignment of proceeds has been made in their favor with a stated value. It will also indicate that if and when payment is made under the letter of credit, payment will automatically be made under the assignment.

Now that the supplier is holding the Assignment of Proceeds they may feel confident that they will receive payment and release the merchandise to the middleman/beneficiary. If all goes according to plan, the beneficiary arranges shipment, obtains the documents necessary to draw against the LC, presents these documents to the bank, and the bank makes payment to both the beneficiary and to the holder of the assignment of proceeds.

Again, this may sound like the perfect solution for the buyer, broker/middleman and supplier, but could something go wrong with this approach? Unfortunately, yes.

With the Assignment in place, once the supplier turns over the merchandise to the broker/middleman, the supplier does lose control of the transaction. Worst case scenario would be that the supplier goes ahead and ships the merchandise to the buyer but also contacts them proposing that they not use the LC as the method of payment. They might even suggest that instead of the LC, they would be happy to offer open account terms. They may propose that after the buyer has received the merchandise, they could wire transfer payment.

The buyer, not knowing that an assignment of proceeds has been issued, may be thrilled at the prospect of not having to pay their bank an examination fee under the LC and embrace the open account proposal.

Meanwhile, we have the supplier sitting back patiently waiting for payment. After two or three weeks, they may contact the bank asking about the status of payment against the assignment only to hear that documents have yet to be presented against the letter of credit. The supplier will be referred to the line in the assignment of proceeds that payment will be made to them if and when payment under the letter of credit is made.

The supplier then tries to contact the broker/middleman only to find out that the phone has been disconnected, and they appear to have left town. The supplier’s prospect for payment at this point isn’t very good. For this very reason, suppliers or manufacturers may shy away from this arrangement.

It’s never a perfect world!

This article was first published in September 2005 and has been updated to include current information, links and formatting.

About the Author: Chris Lidberg

Ms. Chris Lidberg was an independent consultant in the area of international banking and Letters of Credit. Ms. Lidberg had more than 25 years of international banking experience, most recently as Vice President at U.S. Bank where she was part of the International Trade Services Division. She was responsible for selling the bank's international products to both customers and prospects, and conducting Letter of Credit seminars.

During her 25 years in banking, 15 of those years were spent in the Letter of Credit area, holding various supervisory positions, later to manage the Letter of Credit department. MS. Lidberg went on to become the manager of International Operations where she was responsible for managing not only Letters of Credit, but also International Collections, Money Transfers, Cash Letters, Investigations and all Telex and SWIFT activities for the bank.

Subscribe to the Newsletter

Are you sure you’re using the right documents for your exports?

When you know how to properly prepare your export paperwork, your goods will ship on time, you’ll get paid more quickly, and you’ll stay compliant with export and import regulations. Find out how by downloading this free guide.

Subscribe to the Newsletter!

Join the 33,143 other exporters and importers who get the latest news, tips and insights from international trade professionals.

Mr. Old Man For those who eat, sleep and breathe Letters of Credit & Cycling

Assignment of proceeds under letter of credit.

• Share on Facebook
• Share on Twitter
• Share on Google+
• Share on Reddit
• Share on Pinterest
• Share on Linkedin
• Share on Tumblr

A corner of Hoi An Ancient City

Good morning Mr.  Old Man,

I would like to ask for your opinion on the following:There are two presentations by two different Chinese banks under an usance L/C issued by us. Notices of acceptance were sent.

Now each bank advised us that it has irrevocable and unconditionally assigned the proceeds to two different banks, one of which is a bank in China, the other is in Switzerland and asked for our agreement and confirmation.

I am not quite clear Article 39 UCP600 is applied in this case as it only mentions the beneficiary as the assignor, not including nominated bank/negotiating  bank.

What are the risks for issuing bank when accepting to pay the assignee especially when the assignee is in different country? What does the issuing bank do to avoid involving in money laundering activities when entering the transactions.

Could you please give me some advice.

Thank you so much.

——–

Accepted draft or incurred deferred payment undertaking may be discounted several times in the forfaiting market. If it is an accepted draft, the beneficiary (assignor) can assign his right to receive the proceeds under the draft by endorsement to another party (assignee) who later on may continue to assign his right to receive the proceeds by endorsement to any subsequent beneficiary.

For drafts with tenor of less than 180 days, the issuing bank would be instructed to confirm its acceptance of payment to the presenter and keep in its custody the accepted drafts.

The fact that the presenting bank instructs the issuing bank to remit the proceeds to a third party may fall into the above category, where the beneficiary may have assigned his right to receive the proceeds under the draft to the presenting bank who later on may have assigned its right to another party.

Assignment of proceeds would also occur where the beneficiary who acts as a trader requests the bank to remit the proceeds to the ultimate supplier or manufacturer in accordance with an assignment of proceeds agreement with the bank.

In your case, the Chinese banks made presentation to your bank on behalf and at the request of the beneficiary. Your bank has confirmed under authenticated swift message to the presenting bank its acceptance of the draft or has incurred its deferred payment undertaking and will make payment in accordance with the presenting bank’s instructions indicated in the covering schedule. Your bank now can make the payment in accordance with the presenting bank’s new instructions without fear of getting involved with the presenting bank’s money laundering scheme (if any).

Kind regards,

Mr. Old Man

• Related Articles
• More By Mr Old Man
• More In Uncategorized

D/P AT XXX DAYS AFTER BL DATE

Questions regarding bpo, negotiation with or without recourse, whether a confirming bank is a nominated bank and…, whether documents can be presented directly to the issuing bank, why is field 46a optional, where a mmtd cannot be issued in negotiable form, documents are to be presented within xx days from/after shipment date, claims payable, settling agent, franchise, excess (deductible), reimbursement claim, insurance document issued to order of the issuing bank, changing payment terms of the lc, amount of cover, lc with special payment condition, abbreviations, tolerance applicable against individual quantities, lc is transferable, another case of assignment of proceeds, authentication of corrections on bill of lading and invoice, domestic lc, why available by payment instead of available by negotiation, assignment in favour of the nominated bank, invoice not issued by the beneficiary, address of the beneficiary, certificate of origin indicating a quantity greater than that stated in the credit, lc confirmed by the first advising bank, a full set of bills of lading means a full set of original bills of lading, the name of the country need not be stated, cargo to be released with more than one bill of lading to be surrendered, counter guarantee, stamp in a language other than that required in the credit, correction and alteration, a certificate must be issued by the entity stated in the credit, documents presented directly to the issuing bank, bl and bl rider signed with different signatures, need the name of the country be stated, how to determine the presentation period when multiple sets of bills of lading are presented, where original bills of lading are not required to be presented, shipped on board the pre-carriage vessel, place of availability vs place of expiry, place of presentation, when lc requires presentation of less than a full set of original bills of lading, express bill of lading, where documents under d/p are not paid, where the bl date is referred to as the date of issuance, whether sub-article 14 (c) is applicable, bill of lading dated prior to lc issuance date, liệu làng chài nam ô  biến mất, phở nam định, phở hà nội và mì quảng được công nhận là di sản văn hóa phi vật thể quốc gia, bún bò huế chờ đó, revised  documents must be re-presented within the period for presentation and before the expiry date of the lc, consignee on documents other than certificate of origin (updated with isbp 821), đường tranh bích họa yên khê, đừng vội vàng chia sẻ những tin tức “pha ke”.

March 1, 2016 at 10:28 pm

Dear Mr. Old Man,

Hello, I hope you are well and I would just like to make another question regarding the assignment of proceeds under the L/C in the above thread;

Contrary to the above question, we are a negotiating bank under the L/C and looking to assign the L/C proceeds to another bank. i) The draft was drawn by the beneficiary, drawn under the Issuing Bank, to the order of us, and ii) along with shipping documents sent to issuing bank, and iii) accepted by the issuing bank, and lastly iv) beneficiary has assigned their rights under L/C to us.

In this case, in our notifying the issuing bank of the assignment of proceeds of L/C to another bank (assignee), would we need to instruct the issuing bank (other than requesting their acknowledgement of assignment and confirmation of maturity payment directly to assignee) to hold the draft drawn under them at their counters and endorsed to assignee’s order, and that it would not be released to third parties without prior consent from the assignee? I would like to ask this since I’m not entirely sure how/what circumstances the issuing bank would release the draft to third parties when the drafts were drawn under them.

Thank you very much for your time in advance.

March 3, 2016 at 10:21 am

Drafts under LC available by acceptance would be accepted and held by the nominated bank or the issuing bank and will be honour on the due date. The issuing bank must act in accordance with the presenter’s instruction. So, the presenter may advise the issuing bank of the assignment of the proceeds and instruct it to pay the assignee on the due date or pay to the order of the assignee. There’s no need to instruct the issuing bank not to release the accepted drafts to third parties other than the assignee.

Kind regards, Mr. Old Man

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Làng chài Nam Ô nằm dưới chân đèo Hải Vân hình thành từ hơn 700 năm trước khi những người …

Recent Posts

Discounting a dpu incurred by isuing bank, ucp 600 articles 30 and 31, field 72 (sender to receiver information) of mt 103, transferring bank s liability under transferred lc, to order bill of lading and endorsement, iqbal moolla: apologies. i pressed the wrong key and omitted my salutations at the end. regard..., iqbal moolla: good day mr. old man. i trust you are well. must an iru (irrevocable reimburseme..., why should an issuing bank not require a sight draft to be drawn on the reimbursing bank – mr. old man: […] 5: in this post , you mentioned “it is encouraged (thr..., x22dib: hey people good mood and good luck to everyone..., popular posts, partial shipments under sub-article 31 (b), whether mt999 is an authenticated swift message, payment lc vs negotiation lc, early presentation.

QUESTION Dear Mr Old Man, I am Dang from Vietnam Prosperity bank. I know …

ĐI TÌM MIẾU VỌNG HUYỀN TRÂN CÔNG CHÚA Ở RÚ CẤM NAM Ô

Signed with a chop bearing company name; corrected documents re-presented, show your love for the country by using appropriate incoterms, đà nẵng – thành phố xe đạp. tại sao không, release of goods without original bill of lading.

• Nation & World

2 arrested for bank robbery in Utica

According to the Utica Police, two people were arrested on Saturday for the Bank of Utica Robbery a day prior.

According to Utica Police Department Spokesman Lt. Michael Curley of the Utica Police Department, a masked man entered the Bank of Utica, located at 222 Genesee Street, a little after 9 a.m. on Saturday and approached the clerk, demanding money.

He fled with an undisclosed sum.

On Saturday, the Utica Police Department tracked two suspects to a location in Utica.

James Perkins, 60, of Hamden, CT, and Christy Roper, 42, of Hamden CT, were taken into custody and a search warrant was executed for the property.

There, police found proceeds from the robbery, along with a “...large quantity of narcotics,” police said.

Perkins and Roper were both charged with second-degree robbery, third-degree criminal possession of a controlled substance, and seventh-degree criminal possession of a controlled substance.

• Academic Calendar
• Development
• Event Calendar
• Human Resources
• Service Catalog
• myGate Login
• Canvas Login

MSU invites the community to 15th annual A Taste of the Arts benefit event

By Aviva Yasgur | Aug 19, 2024

MURRAY, Ky. –  The College of Humanities and Fine Arts at Murray State University invites the public to attend the 15th annual A Taste of the Arts dinner and live auction event, with proceeds designated to provide scholarships for fine arts students.

The event will be held on Thursday, October 17, in Lovett Auditorium. Doors open at 5 p.m. for a cocktail hour, and dinner will be served at 6 p.m. The event is sponsored by FNB Bank and will showcase performances by fine arts students, a free photo booth by Patrick Abanathy of Abanathy Photography, LLC, a fine dining experience provided by Sodexo and a live auction conducted by professional auctioneer Tanner Roberts.

“A Taste of the Arts is an essential scholarship fundraiser for our hardworking fine arts students,” said David Balthrop, dean of Murray State’s College of Humanities and Fine Arts. “However, it is so much more. It brings together our community to celebrate the importance of the arts in all of our lives, and it showcases our next generation of artists, musicians and actors. I hope you will join us for an evening of inspiration, philanthropy and fun.”

As part of the event, the College of Humanities and Fine Arts annually awards the Outstanding Alumni in the Fine Arts. This year’s recipient is Carrie Stover (’05). Stover serves with the leadership team as the Director of the Shrode Art Center at Cedarhurst Center for the Arts in Mount Vernon, Illinois, where she has worked since 2006. As director, she curates the Regenhardt Gallery, which focuses on highlighting artists in the southern Illinois region through juried competitions and solo exhibitions. She also organizes educational programs, teaches, oversees craft affinity groups and develops cutting-edge programs to successfully grow support for the arts in the region. The Illinois Association of Museums selected her as the 2022 Museum Professional of the Year, which is a prestigious statewide honor. As an artist, Stover exhibits her ceramic work in galleries nationally.

“The Department of Art & Design is thrilled to bestow this well-deserved honor on alumna Carrie Stover,” said Dr. Rebecca Williams, Art & Design Department chair. “Her work as a leader in the arts community makes a difference in our region, and she generously supports our current Murray State students by sharing her wisdom and experience through speaking and jurying engagements. Carrie is a wonderful ambassador for our department and our University, and we are excited for the opportunity to introduce her to our guests at this year’s A Taste of the Arts.”

The College also selects an annual recipient for the Outstanding Fine Arts Young Alumni award, and this year’s winner is Leva Bates (’03). Bates is a professional wrestler who made her debut in 2006 and won the Southeastern Championship Wrestling Women’s Championship in 2008. In addition to her numerous championship wins, she is best known for her work with All Elite Wrestling where she appeared as The Librarian. In 2023, she appeared in the Netflix reality show “Squid Game: The Challenge.”

All proceeds benefit the Taste of the Arts scholarship fund, which directly supports students in the fine arts in their pursuit of a quality arts education. This fund supported 46 students in the 2023-24 academic year in their studies at Murray State.

Advance registration is required; the reservation deadline is October 7 or until all seats are filled. Individual tickets are $75, and full tables of eight are $550. To sponsor a table, RSVP to reserve individual seats or request more information, visit   murraystate.edu/homecoming   or contact Aviva Yasgur in the Office of Development by October 7 at 270-809-4518. To make a direct contribution to the Taste of the Arts scholarship fund, please contact Kala Dunn at 270-809-3940 or   [email protected] .

Take the next step

• Request Info
• Visit Campus
• Apply Today

• At the heart of the contactless ecosystem since 2008
• Contactless World Congress
• NFCW Knowledge Centre
• Featured partners

• About our partners

Credit Bank of Moscow

Two news stories. credit bank of moscow, two news stories., fidesmo pay launches in russia.

EXHIBITOR NEWS: Fidesmo is rolling out its Fidesmo Pay wearable payments service in Russia with support from eight of the country’s leading banks, enabling their customers to upload their bank cards to NFC-enabled wearables and use them to make contactless payments...  More

Russia’s Mir domestic payments system adds support for NFC payments

National Payment Card System (NSPK), operator of Russia’s Mir domestic payments network, has begun rolling out support for Android NFC mobile payments...  More

Feed for stories featuring .

• Find a list of all the companies and other organisations that have been featured in NFCW in our directory .

Smooth Sailing: Assignment of Proceeds Simplifying International Trade

1. introduction to assignment of proceeds, 2. how assignment of proceeds works, 3. benefits of assignment of proceeds for importers and exporters, 4. types of transactions that benefit from assignment of proceeds, 5. steps to set up an assignment of proceeds, 6. common challenges with assignment of proceeds and how to overcome them, 7. comparison of assignment of proceeds with other trade finance tools, 8. successful implementation of assignment of proceeds in international trade, 9. assignment of proceeds as a tool for smooth sailing in international trade.

When it comes to international trade, there are a lot of moving parts, and one of the most important is making sure that payment is received for goods and services. However, with so many parties involved in the process, it can be difficult to ensure that everyone is on the same page. That's where the assignment of proceeds comes in. Essentially, this is a legal document that assigns the right to receive payment from a buyer's bank to a seller's bank. By doing this, it ensures that the seller can receive payment for goods or services rendered, even if the buyer defaults. It's an important tool for both buyers and sellers, and can help facilitate smooth transactions .

Here are some key things to know about assignment of proceeds:

1. It's a legal document: The assignment of proceeds is a legal document, and as such, it needs to be drafted carefully to ensure that all parties understand their rights and responsibilities. Typically, it will be drafted by the seller's bank, and will be sent to the buyer's bank for approval.

2. It can be used for different types of transactions: The assignment of proceeds is most commonly used in international trade, but it can also be used for other types of transactions. For example, it can be used in insurance claims to ensure that the insurance company pays out to the correct party.

3. It can be irrevocable or revocable: There are two types of assignment of proceeds - irrevocable and revocable. An irrevocable assignment of proceeds means that once it is in place, it cannot be changed without the consent of all parties involved. A revocable assignment of proceeds, on the other hand, can be changed or cancelled by the buyer at any time.

4. It can help mitigate risk: When doing business internationally, there is always a risk that the buyer will default on payment. By having an assignment of proceeds in place, the seller can mitigate this risk by ensuring that they will still receive payment even if the buyer defaults.

5. It can be used for financing: In some cases, the assignment of proceeds can be used as collateral for financing. For example, a seller may use it to secure a loan to finance the production of goods.

Overall, the assignment of proceeds is an important tool for facilitating international trade . By ensuring that payment will be received even if the buyer defaults, it gives both buyers and sellers peace of mind and helps to ensure smooth transactions.

Introduction to Assignment of Proceeds - Smooth Sailing: Assignment of Proceeds Simplifying International Trade

When engaging in international trade, one of the most important things to consider is the payment process. The last thing anyone wants is to complete a shipment and find out that they are not going to be paid. This is where the assignment of proceeds comes in. This process helps to ensure that everyone involved in the transaction is protected. In this section, we will take a closer look at how assignment of proceeds works and how it simplifies international trade .

1. Assignment of proceeds is a process where the seller of goods assigns the right to receive payment to a third party. This third party is usually a bank or other financial institution . The buyer of the goods agrees to pay the bank or financial institution instead of paying the seller directly.

2. Once the bank or financial institution receives payment from the buyer, they will deduct any fees owed to them and then release the remaining funds to the seller. This process helps to ensure that the seller receives payment for their goods and that the buyer is protected from fraud.

3. In some cases, the assignment of proceeds is used to secure a loan. For example, if a company needs to borrow money to purchase goods from a seller, they may assign the proceeds of the sale to the bank or financial institution that is providing the loan. This helps to ensure that the lender will be repaid even if the borrower is unable to repay the loan.

4. The assignment of proceeds can also be used to secure payment for services rendered. For example, if a construction company is hired to build a new office building, they may assign the proceeds of the contract to a bank or financial institution. This helps to ensure that the construction company will be paid for their work.

5. One of the benefits of using assignment of proceeds is that it simplifies the payment process. Instead of worrying about how to pay the seller directly, the buyer can make the payment to the bank or financial institution. This also helps to reduce the risk of fraud and ensures that everyone involved in the transaction is protected.

In summary, the assignment of proceeds is an important process that helps to simplify international trade. By assigning the right to receive payment to a third party, everyone involved in the transaction is protected and the payment process is simplified. Whether it is used to secure a loan or to secure payment for goods or services rendered, the assignment of proceeds is an effective tool for managing risk in international trade.

How Assignment of Proceeds Works - Smooth Sailing: Assignment of Proceeds Simplifying International Trade

The Assignment of Proceeds (AoP) is a financial instrument that has been gaining popularity among importers and exporters worldwide. The reason for its popularity is the benefits it provides to both parties involved in international trade. AoP is a guarantee given by a bank to a seller that ensures payment will be received in full and on time. It is a mechanism that acts as a safeguard for the seller, ensuring that the payment will be made before the goods are released to the buyer. The benefits of AoP are numerous, and they vary depending on the point of view of the parties involved.

1. For Importers: AoP provides a level of comfort and assurance to the importer that the goods they are importing will be delivered as agreed. This is because the payment is not released until the seller provides the necessary documents to the bank. This means that the importer can be assured that the goods are being shipped as agreed, and that they are of the expected quality. In addition, AoP can help the importer to negotiate better payment terms with the seller, as it provides a level of security for the seller.

2. For Exporters: AoP provides a level of security and assurance to the exporter that they will receive payment for their goods. This is because the bank is responsible for ensuring that payment is received in full and on time, even if the buyer defaults on their payment. In addition, AoP can help the exporter to negotiate better payment terms with the buyer, as it provides a level of security for the buyer.

3. For Banks: AoP provides banks with an opportunity to generate revenue by charging fees for their services. This is because banks charge a fee for issuing the AoP, which can vary depending on the amount of the transaction and the risk involved. In addition, AoP allows banks to manage their risk more effectively , as they can be assured that the payment will be received in full and on time.

The Assignment of Proceeds is a valuable financial instrument that provides benefits to all parties involved in international trade. It provides importers and exporters with a level of security and assurance that their goods and payments will be delivered as agreed. It also provides banks with an opportunity to generate revenue and manage their risk more effectively. With the increasing globalization of trade, the Assignment of Proceeds is becoming an essential tool for importers and exporters who want to ensure the smooth sailing of their transactions.

Benefits of Assignment of Proceeds for Importers and Exporters - Smooth Sailing: Assignment of Proceeds Simplifying International Trade

In international trade, there are many types of transactions that could benefit from an assignment of proceeds . An assignment of proceeds is a legal document that allows the seller to receive payment directly from the buyer's bank. This document is particularly useful in international trade because it reduces the risk of non-payment and ensures that the seller receives payment in a timely manner. There are many different types of transactions that can benefit from an assignment of proceeds, including:

1. Letters of Credit : When a buyer and seller agree to use a letter of credit as a payment method, an assignment of proceeds can be used to ensure that the seller receives payment directly from the issuing bank. This can be particularly useful when dealing with unfamiliar or unreliable buyers.

2. Open Account : When a buyer and seller agree to use an open account as a payment method, an assignment of proceeds can be used to provide additional security for the seller. By assigning the proceeds of the sale to the seller's bank, the seller can reduce the risk of non-payment and improve their cash flow.

3. Documentary Collection : When a buyer and seller agree to use a documentary collection as a payment method, an assignment of proceeds can be used to ensure that the seller receives payment once the required documents are presented to the buyer's bank. This can be particularly useful when dealing with buyers who are reluctant to pay until they receive the goods.

4. Advance Payment : When a buyer makes an advance payment to a seller, an assignment of proceeds can be used to ensure that the seller receives the payment before shipping the goods. This can be particularly useful when dealing with buyers who are located in countries with a high risk of non-payment.

An assignment of proceeds can be a valuable tool for sellers engaged in international trade . By ensuring that payment is received in a timely manner, this document can help to reduce the risk of non-payment and improve cash flow . Whether using letters of credit, open accounts, documentary collections, or advance payments, an assignment of proceeds can provide additional security for sellers and help to ensure smooth sailing in international trade.

Types of Transactions that Benefit from Assignment of Proceeds - Smooth Sailing: Assignment of Proceeds Simplifying International Trade

Setting up an assignment of proceeds can be a daunting task, especially for those who are new to international trade. However, it is a crucial step that can simplify the payment process and ensure that all parties involved are protected. From the perspective of a seller, an assignment of proceeds can guarantee payment for goods or services provided, while from a buyer's perspective, it can ensure that funds are only released once the terms of the contract have been met. In this section, we will discuss the steps involved in setting up an assignment of proceeds.

1. Draft the agreement: The first step in setting up an assignment of proceeds is to draft an agreement that clearly outlines the terms and conditions of the arrangement. This agreement should include details such as the names and contact information of all parties involved, the amount of the proceeds to be assigned, the terms of payment, and any conditions that must be met before funds are released.

2. Obtain approval from all parties: Once the agreement has been drafted, it must be approved by all parties involved. This includes the buyer, seller, and any banks or financial institutions that may be involved in the transaction.

3. Notify the bank: Once approval has been obtained, the seller must notify their bank of the assignment of proceeds. This can typically be done through a letter of credit or other similar document.

4. Provide documentation: In order to ensure that the assignment of proceeds is valid and enforceable, the seller must provide documentation such as invoices, bills of lading, and other relevant paperwork. This documentation should clearly indicate that payment is to be made to the seller's bank.

5. Ensure compliance: Finally, it is important to ensure that all parties involved comply with the terms of the agreement. This includes ensuring that all conditions have been met before funds are released and that payment is made to the correct bank account.

Setting up an assignment of proceeds can be a complex process, but by following these steps, it can be made simpler and more effective. By clearly outlining the terms and conditions of the arrangement, obtaining approval from all parties involved, and ensuring compliance with the agreement, international trade transactions can be conducted with greater ease and security.

Steps to Set Up an Assignment of Proceeds - Smooth Sailing: Assignment of Proceeds Simplifying International Trade

The Assignment of Proceeds (AOP) is a popular financial instrument used in international trade transactions. It is a legal agreement between the buyer, seller, and their respective banks. Under the AOP, the buyer's bank agrees to release payment to the seller upon receipt of the shipping documents. The seller's bank, in turn, agrees to transmit the shipping documents to the buyer's bank once they receive payment. Although the AOP is a commonly used instrument, it comes with its own set of challenges, which can lead to delays in payment and disputes between the parties involved.

To ensure smooth sailing with the AOP, it is essential to be aware of these challenges and take necessary steps to overcome them. Here are some common challenges that arise with the AOP and how to overcome them:

1. Lack of Understanding: One of the most significant challenges with the AOP is the lack of understanding between the parties involved . It is crucial to ensure that all parties involved in the transaction understand the terms and conditions of the AOP. The buyer, seller, and their respective banks should be clear on their roles and responsibilities , the documents required, and the timeline for payment.

2. Discrepancies in Documents: Another major challenge with the AOP is discrepancies in the shipping documents. The buyer's bank will only release payment to the seller's bank once they receive the shipping documents. Any discrepancies in the documents can lead to delays in payment or even non-payment. It is essential to ensure that all the documents are accurate and comply with the terms of the AOP.

3. Trust Issues: The AOP involves a complex web of relationships between the buyer, seller, and their respective banks. trust is a crucial element in such relationships. Any lack of trust between the parties can lead to disputes and delays in payment. It is important to establish trust between the parties involved and maintain open lines of communication throughout the transaction.

4. Legal Framework: The AOP is a legal document, and its terms and conditions must comply with the laws of the countries involved in the transaction. It is essential to ensure that the AOP is drafted in compliance with the local laws of both the buyer and seller's countries.

The AOP is a useful financial instrument that simplifies international trade. However, it comes with its own set of challenges, which can lead to delays in payment and disputes between the parties involved. By understanding these challenges and taking necessary steps to overcome them, it is possible to ensure smooth sailing with the AOP and streamline international trade transactions.

Common Challenges with Assignment of Proceeds and How to Overcome Them - Smooth Sailing: Assignment of Proceeds Simplifying International Trade

When it comes to trade finance tools , there are quite a few options available to choose from. Each tool has its own strengths and weaknesses, and the suitability of each tool depends on the specific requirements of the trade transaction. In this section, we will compare the Assignment of Proceeds (AOP) with other trade finance tools to understand how AOP stands out from the rest.

1. Letter of Credit (LC): LC is one of the most popular trade finance tools. It is a payment assurance provided by the buyer's bank to the seller. In an LC, the buyer's bank promises to pay the seller a certain amount of money on behalf of the buyer, provided that the seller submits all the required documents as per the terms and conditions of the LC. Unlike AOP, LC involves the buyer's bank, which means that the seller has to rely on the buyer's bank's creditworthiness. Also, LC involves a lot of documentation, which can be time-consuming and expensive.

2. Documentary Collection (DC): DC is another trade finance tool that involves the buyer's and seller's banks. In DC, the seller ships the goods to the buyer, and the seller's bank sends the shipping documents to the buyer's bank. The buyer's bank will release the shipping documents to the buyer only if the buyer pays for the goods. DC is less expensive than LC, but it still involves the banks, which means that the seller has to rely on the banks' creditworthiness.

3. open account : Open account is a trade finance tool where the seller ships the goods to the buyer without any payment assurance. The seller trusts the buyer to pay for the goods at a later date. Open account is the least expensive trade finance tool, but it is also the riskiest. Unlike AOP, open account does not provide any payment assurance to the seller.

AOP stands out from other trade finance tools because it provides payment assurance to the seller without involving the banks. In AOP, the buyer's bank sends a written undertaking to the seller's bank that the proceeds of the sale will be paid to the seller's bank. AOP is less expensive than LC and DC, and it is less risky than open account. For example, if a seller exports goods to a buyer in a foreign country, and the buyer defaults on payment, the seller can claim the proceeds of the sale from the buyer's bank directly, without involving the buyer or the buyer's bank.

AOP is a powerful trade finance tool that simplifies international trade by providing payment assurance to the seller without involving the banks. AOP is less expensive and less risky than other trade finance tools, making it an attractive option for both buyers and sellers .

Comparison of Assignment of Proceeds with Other Trade Finance Tools - Smooth Sailing: Assignment of Proceeds Simplifying International Trade

The implementation of Assignment of Proceeds (AOP) has been a game-changer in international trade. It has simplified the process of payment for goods and services for both buyers and sellers. AOP is a legal instrument that ensures payments are made on time and in full, reducing the risk of default. In this section, we will explore case studies of successful implementation of AOP in international trade.

1. case study 1: The first case study is that of a company in the United States that exported high-end electronics to a buyer in Japan. The Japanese buyer was initially hesitant to use AOP but was convinced by the seller's explanation of the benefits. The seller used a bank that had experience in handling AOP transactions to ensure that the process was flawless. The bank acted as the intermediary between the buyer and seller, ensuring that the payment was made on time, and the goods were delivered as promised. The buyer was satisfied with the quality of the goods, and the seller received payment in full.

2. Case Study 2: The second case study involves a company in the UK that imported textiles from India. The seller in India was concerned about the risk of default, as they had no previous relationship with the buyer. The buyer suggested using AOP, and the seller agreed. The buyer's bank acted as the intermediary, ensuring that the payment was made to the seller's bank upon receipt of the shipping documents. The seller was satisfied with the payment process and continued to use AOP for all future transactions with the buyer.

3. Case Study 3: The third case study is from the perspective of a bank that facilitated an AOP transaction between a buyer in China and a seller in the United States. The bank had experience in handling AOP transactions and was able to provide guidance to the buyer and seller. The bank ensured that all parties understood the terms and conditions of the AOP, and the payment was made without any issues. The buyer and seller were satisfied with the process and continued to use the bank's services for future transactions.

The implementation of AOP in international trade has proven to be successful, as demonstrated by the case studies above. It has simplified the payment process, reduced the risk of default, and provided a level of security for both buyers and sellers. AOP is a valuable tool for any company engaged in international trade.

Successful Implementation of Assignment of Proceeds in International Trade - Smooth Sailing: Assignment of Proceeds Simplifying International Trade

The Assignment of Proceeds (AOP) is an essential tool for smooth sailing in international trade. It is a payment mechanism that provides security for both the buyer and the seller. From the perspective of the seller, AOP guarantees that their payment will be received promptly, while the buyer is assured that the payment will not be released until the necessary documents and goods have been provided. Thus, it helps to minimize the risk of fraud and non-payment. In this section, we will dive deeper into AOP and its benefits.

1. AOP is a flexible tool that can be used in different types of transactions, such as letters of credit, open account, or advanced payment. This versatility makes it an attractive option for both buyers and sellers.

2. AOP provides an added layer of security to the transaction. In the case of a letter of credit, the bank will release the payment only after receiving the documents that prove that the goods have been shipped. This way, the buyer is assured that they will receive the goods they paid for, while the seller is guaranteed prompt payment.

3. AOP can be particularly useful in situations where the buyer and the seller are located in different countries with different legal systems. By using AOP, both parties can be sure that the transaction will be executed in accordance with the terms agreed upon in the contract.

4. AOP can also be used to mitigate the risk of non-payment in case of insolvency or bankruptcy of the buyer. By assigning the proceeds of the sale to the seller's bank, AOP ensures that the seller will receive payment even if the buyer is unable to fulfill their payment obligations.

5. AOP can help to streamline the transaction process, reducing the time and cost associated with international trade. By providing security and trust, AOP can encourage more businesses to engage in cross-border transactions , thereby promoting economic growth .

AOP is a powerful tool that can simplify international trade by providing security, trust, and flexibility to both buyers and sellers. It can help to mitigate the risks associated with cross-border transactions , promote economic growth, and contribute to the development of a more efficient and transparent international trade system.

Assignment of Proceeds as a Tool for Smooth Sailing in International Trade - Smooth Sailing: Assignment of Proceeds Simplifying International Trade

Read Other Blogs

Off-page optimization is a crucial aspect of SEO strategy that extends beyond the confines of one's...

Learning difficulties are not a sign of low intelligence or laziness. They are brain-based...

Rent is often one of the most significant expenses for businesses, especially for those that...

In the dynamic landscape of new ventures, the symbiosis between startup incubators and angel...

Film festivals are a celebration of the cinematic arts, a place where both filmmakers and film...

In the competitive landscape of modern business, the fusion of referral marketing with customer...

In the rhythm of our everyday existence, music emerges as a powerful interlude, offering a respite...

Product-Market Fit (PMF) is the harmonious point where a product meets a strong market demand. It's...

One of the most crucial steps in biotechnology is the ability to manipulate and analyze DNA...