This is an agreement that transfers the right to collect a specific debt from a creditor (the
"Assignor") to a third party (the "Assignee). The Assignee must pay something of value
in order for the transfer to be valid and binding and the Assignor verifies that the debt
actually exists and is free of any encumbrance. This document is ideal for small
businesses or individuals that wish to buy or sell the right to collect a specific debt.
ASSIGNMENT OF LETTER OF CREDIT
This assignment (the “Assignment”) is made on this ______ day of ______, 20____, by and
between _______________________ (hereinafter referred to as "Assignor"), with located at
______________________ and _____________________ (hereinafter referred to as
"Assignee"), located at ___________________.
In consideration of the covenants and obligations contained herein and FOR GOOD AND
VALUABLE CONSIDERATION, receipt and sufficiency of which is hereby acknowledged,
Assignor and Assignee represent and agree as follows:
1. The Assignor, in consideration of __________ dollars ($ ___________), hereby irrevocably
and unconditionally assigns and transfers to the Assignee all of its right, title and interest under
the Letter of Credit bearing No. _____________, dated ______________ and issued by
2. Assignor hereby agrees to execute all papers necessary to perfect this Assignment.
3. The Assignor hereby covenants that it owns the said Letter of Credit free of any liens, charges
or other encumbrances and Assignor further covenants that from the date of this Assignment, the
Assignee shall have the sole rights as Beneficiary under this Letter of Credit and is entitled to
receive all proceeds payable under the Letter of Credit.
4. This Assignment shall be governed in accordance with the laws of the State of ________.
Any dispute, controversy or legal proceeding regarding this Assignment shall be resolved and
adjudicated in the Courts of the State of _________________.
IN WITNESS WHEREOF, this Assignment has been duly executed by the Assignor and
Assignee the day and date first above written.
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STATE OF _______________
COUNTY OF _____________
Before me this [insert date] personally appeared: [name of Assignor], to me known to be the
person who is described in and who executed the assignment instrument and acknowledged to
me that he executed the same of his own free will for the purpose therein expressed.
My Commission Expires: ________
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