N.Y. UCC Law § 5-114

Section 5--114. Assignment of proceeds.\n (a) In this section, "proceeds of a letter of credit" means the cash,\ncheck, accepted draft, or other item of value paid or delivered upon\nhonor or giving of value by the issuer or any nominated person under the\nletter of credit. The term does not include a beneficiary's drawing\nrights or documents presented by the beneficiary.\n (b) A beneficiary may assign its right to part or all of the proceeds\nof a letter of credit. The beneficiary may do so before presentation as\na present assignment of its right to receive proceeds contingent upon\nits compliance with the terms and conditions of the letter of credit.\n (c) An issuer or nominated person need not recognize an assignment of\nproceeds of a letter of credit until it consents to the assignment.\n (d) An issuer or nominated person has no obligation to give or\nwithhold its consent to an assignment of proceeds of a letter of credit,\nbut consent may not be unreasonably withheld if the assignee possesses\nand exhibits the letter of credit and presentation of the letter of\ncredit is a condition to honor.\n (e) Rights of a transferee beneficiary or nominated person are\nindependent of the beneficiary's assignment of the proceeds of a letter\nof credit and are superior to the assignee's right to the proceeds.\n (f) Neither the rights recognized by this section between an assignee\nand an issuer, transferee beneficiary, or nominated person nor the\nissuer's or nominated person's payment of proceeds to an assignee or a\nthird person affect the rights between the assignee and any person other\nthan the issuer, transferee beneficiary, or nominated person. The mode\nof creating and perfecting a security interest in or granting an\nassignment of a beneficiary's rights to proceeds is governed by article\n9 or other law. Against persons other than the issuer, transferee\nbeneficiary, or nominated person, the rights and obligations arising\nupon the creation of a security interest or other assignment of a\nbeneficiary's right to proceeds and its perfection are governed by\narticle 9 or other law.\n