what is the meaning of assignment of proceeds

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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.

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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.

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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.

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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.

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.

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Bank Guarantee: Mitigating Risk with Assignment of Proceeds

1. understanding bank guarantees, 2. what is an assignment of proceeds, 3. types of assignment of proceeds, 4. benefits of an assignment of proceeds, 5. how an assignment of proceeds works, 6. key considerations for assigning proceeds, 7. mitigating risks with an assignment of proceeds, 8. legal framework for assigning proceeds, 9. utilizing assignment of proceeds for risk mitigation.

When it comes to mitigating risk in financial transactions, bank guarantees are a valuable tool for both parties involved. understanding bank guarantees is essential to ensure that you can use them effectively and navigate the complexities that may arise. From a buyer's perspective, bank guarantees offer reassurance that they will receive goods or services as agreed upon, while sellers can use bank guarantees to ensure payment for their products or services. In this section, we will dive deeper into the concept of bank guarantees and explore their use in different scenarios. Here are some key points to keep in mind:

1. Bank guarantees are a form of assurance provided by a bank to one of the parties involved in a transaction. They are often used in international trade, where buyers and sellers may not have an established relationship or may be located in different countries.

2. Bank guarantees come in different forms, but the most common type is the letter of credit. This is a document issued by a bank that guarantees payment to the seller once they have fulfilled certain conditions, such as delivering the goods or services as agreed upon.

3. Bank guarantees can be either conditional or unconditional. Conditional bank guarantees are dependent on the fulfilment of certain conditions, while unconditional bank guarantees are not subject to any conditions.

4. Bank guarantees can be costly, and the fees charged by banks can vary depending on the type of guarantee and the level of risk involved . Buyers and sellers need to be aware of these costs and factor them into their pricing and budgeting.

5. Bank guarantees can be subject to fraud, so it's essential to take steps to protect yourself. For example, buyers should verify the authenticity of the bank guarantee with the issuing bank, while sellers should ensure that the conditions for payment are clearly outlined and that they have fulfilled their obligations.

6. Bank guarantees can be an effective way to mitigate risk in financial transactions , but they are not foolproof. buyers and sellers need to understand their limitations and explore other options, such as insurance or escrow services, to further reduce their risk.

In summary, bank guarantees are a valuable tool for mitigating risk in financial transactions, but they require careful consideration and understanding to use effectively. By keeping these key points in mind, you can navigate the complexities of bank guarantees and ensure that you are protected in your financial transactions.

Understanding Bank Guarantees - Bank Guarantee: Mitigating Risk with Assignment of Proceeds

Assignment of Proceeds is an important topic when it comes to understanding the risks associated with international trade. It refers to a legal document where the exporter assigns all or part of the proceeds from a letter of credit to a third party, usually a bank. This is done to mitigate the risk of non-payment by the importer and to provide assurance to the bank that the exporter will be paid for their goods or services. From the exporter's perspective, assigning the proceeds ensures that they will receive payment even if the importer defaults. From the bank's perspective, it reduces the risk of non-payment and provides a guarantee of payment to the exporter.

Here are some important points to know about the Assignment of Proceeds:

1. This legal document provides assurance to the bank that the exporter will be paid for their goods or services.

2. The exporter assigns all or part of the proceeds from a letter of credit to a third party, usually a bank.

3. It is a useful risk mitigation tool for international trade.

4. The benefits of an Assignment of Proceeds are that it can help reduce the risk of non-payment and provide a guarantee of payment to the exporter.

5. A bank may require an Assignment of Proceeds as a condition for issuing a letter of credit.

6. The document is legally binding and ensures that the exporter will receive payment even if the importer defaults.

7. An example of an Assignment of Proceeds in action might be an exporter assigning the proceeds of a letter of credit to their bank , who then releases the funds to the exporter once the goods have been shipped.

An Assignment of Proceeds is a legal document that provides assurance to the bank that the exporter will be paid for their goods or services. It is an important risk mitigation tool for international trade and can help reduce the risk of non-payment. A bank may require an Assignment of Proceeds as a condition for issuing a letter of credit. The document is legally binding and ensures that the exporter will receive payment even if the importer defaults.

What is an Assignment of Proceeds - Bank Guarantee: Mitigating Risk with Assignment of Proceeds

When it comes to bank guarantees, the assignment of proceeds serves as a critical risk mitigation tool. This instrument is a legal agreement between the beneficiary of the bank guarantee and a third-party beneficiary, typically the supplier or contractor. The third party beneficiary has the right to receive payment as soon as the bank guarantee is invoked by the beneficiary. There are different types of assignment of proceeds that one can choose from, depending on the nature of the transaction and the parties involved. Understanding the different types of assignment of proceeds is critical for parties involved in bank guarantee transactions. Here are some of the commonly used ones:

1. Conditional Assignment: In this type of assignment, the third-party beneficiary's right to receive payment is subject to the occurrence of certain conditions. For instance, the supplier may be required to provide proof of delivery or other documentation before receiving the payment. This type of assignment is useful when the parties want to ensure that the supplier has fulfilled all the contractual obligations before receiving payment.

2. Absolute Assignment: In this type of assignment, the third-party beneficiary's right to receive payment is unconditional. The beneficiary can assign the proceeds without any conditions or restrictions. This type of assignment is useful when the beneficiary wants to provide more flexibility to the supplier or contractor.

3. Proportionate Assignment: In this type of assignment, the third-party beneficiary's right to receive payment is proportional to the amount of work or goods delivered. For instance, if the supplier has delivered 50% of the goods, they will receive 50% of the payment. This type of assignment is useful when the transaction involves partial deliveries or milestones.

4. With Recourse Assignment: In this type of assignment, the third-party beneficiary has the right to claim payment from the beneficiary or the bank. If the beneficiary fails to pay, the third party can claim payment from the bank. This type of assignment is useful when the parties are not sure about the financial position of the beneficiary.

Understanding the different types of assignment of proceeds is critical for parties involved in bank guarantee transactions. Choosing the right type of assignment can help mitigate risks, provide flexibility, and ensure timely payment.

Types of Assignment of Proceeds - Bank Guarantee: Mitigating Risk with Assignment of Proceeds

Assignment of proceeds is an instrument commonly used by banks to mitigate the risk of non-payment by their clients. It is a process where the beneficiary of a letter of credit or a bank guarantee assigns the right to receive payment to a third party, usually a bank. This mechanism provides the beneficiary with a level of assurance that they will receive payment even if the applicant defaults on their payment obligations. The assignment of proceeds is particularly useful in international trade where parties are often located in different jurisdictions, and there is a risk of non-payment due to factors such as political instability, currency fluctuations, or commercial disputes.

Here are some of the benefits of an Assignment of Proceeds:

1. Mitigates the risk of non-payment: By assigning the right to receive payment to a third party, the beneficiary reduces the risk of non-payment by the applicant. The third party, usually a bank, acts as a guarantor and undertakes to pay the beneficiary even if the applicant defaults on their payment obligations.

2. Improves the creditworthiness of the beneficiary: The assignment of proceeds can improve the creditworthiness of the beneficiary as it provides them with a level of assurance that they will receive payment. This can be particularly useful for small and medium-sized enterprises (SMEs) that may not have the financial resources to pursue legal action in case of non-payment.

3. Provides a level of confidentiality: The assignment of proceeds can provide a level of confidentiality as the third party, usually a bank, acts as an intermediary between the beneficiary and the applicant. This can be particularly useful in cases where the beneficiary does not want to disclose their financial information to the applicant.

4. facilitates international trade : The assignment of proceeds can facilitate international trade as it provides a level of assurance to both the beneficiary and the applicant. This can help to reduce the risk of disputes and delays in payment, which can be particularly important in cross-border transactions .

For example, if a company in the United States wants to purchase goods from a supplier in China, they can use an assignment of proceeds to reduce the risk of non-payment. The beneficiary, in this case, the supplier in China, can assign the right to receive payment to a bank in China. The bank in China then undertakes to pay the supplier even if the company in the United States defaults on their payment obligations. This provides the supplier with a level of assurance that they will receive payment, which can help to facilitate the transaction.

Benefits of an Assignment of Proceeds - Bank Guarantee: Mitigating Risk with Assignment of Proceeds

When buying or selling goods , the parties involved want to ensure that they receive what they are entitled to. In international trade, this can be a complex process due to the distance between the buyer and the seller, as well as the various regulations and risks involved. An assignment of proceeds is a method that can help mitigate these risks and ensure that both parties receive what they are entitled to.

Here are some points to keep in mind when it comes to the assignment of proceeds:

1. Definition: An assignment of proceeds is a legal document that allows a seller to transfer their right to receive payment to a third party, such as a bank. The bank then ensures that the buyer pays the seller the agreed amount, and the bank receives the payment on behalf of the seller.

2. Protection: One of the main benefits of an assignment of proceeds is that it provides protection to both the buyer and the seller. The buyer knows that the payment will only be released once the goods have been shipped, and the seller knows that they will receive payment once the goods have been delivered.

3. Documentation: To ensure that the assignment of proceeds is legally binding, it is important to have the right documentation in place. This includes a contract between the buyer and the seller, as well as a separate agreement between the seller and the bank.

4. Process: The process for using an assignment of proceeds typically involves the seller notifying the buyer that they will be using this method, and providing the necessary documentation to the bank. The bank then confirms that they have received the documentation and that they will release the payment to the seller once the goods have been shipped.

5. Example: An example of how an assignment of proceeds can be used is in the sale of a car from Japan to the United States. The buyer in the United States wants to ensure that they receive the car before they release the payment, while the seller in Japan wants to ensure that they receive payment once the car has been shipped. By using an assignment of proceeds, both parties can be confident that their needs will be met.

Overall, an assignment of proceeds is an effective way to mitigate the risks involved in international trade and ensure that both parties receive what they are entitled to.

How an Assignment of Proceeds Works - Bank Guarantee: Mitigating Risk with Assignment of Proceeds

When assigning proceeds, it is important to consider different factors that can impact the process. From the perspective of the beneficiary, assigning the proceeds to a third party can provide financing and liquidity options. However, from the perspective of the bank, there are risks associated with the assignment process. Therefore, it is essential to understand the key considerations for assigning proceeds to ensure that all parties involved are protected.

1. Credibility of the assignee: When assigning proceeds to a third party, it is important to ensure that the assignee is credible and trustworthy. This can be done by conducting a background check and verifying their financial position.

2. Assignment language: The language used in the assignment document should be clear and concise to avoid any misinterpretations. It should clearly state the rights and obligations of all parties involved, including the beneficiary, the bank, and the assignee.

3. Notification requirements: The beneficiary should notify the bank of the assignment in writing to ensure that the bank is aware of the change in the payment instructions. Failure to provide proper notification can result in delays in payment or rejection of the assignment.

4. Bank consent: The bank may require the assignee to provide a letter of credit or other forms of collateral as a condition for granting consent to the assignment. This is to ensure that the bank is protected in case of default by the assignee.

5. Payment instructions: The payment instructions in the assignment document should be clear and unambiguous. This will ensure that the bank can follow the instructions and make the payment to the correct party.

For example, if a company assigns the proceeds of a bank guarantee to a supplier, the supplier should be credible and financially sound. The assignment language should clearly state the obligations of all parties, including the bank, the beneficiary, and the assignee. The beneficiary should notify the bank of the assignment in writing, and the bank may require the assignee to provide collateral as a condition for granting consent. Finally, the payment instructions should be clear to ensure that the bank can make the payment to the correct party. By considering these key factors, all parties involved can mitigate the risks associated with the assignment of proceeds.

Key Considerations for Assigning Proceeds - Bank Guarantee: Mitigating Risk with Assignment of Proceeds

When it comes to international trade transactions , mitigating risks is crucial for all parties involved. One way to do this is by using a bank guarantee, which ensures that the seller will receive payment for their goods or services, even if the buyer defaults on their payment. However, even with a bank guarantee in place, there is still a risk that the buyer may default on their payment, leaving the seller with no way to collect their money. This is where an assignment of proceeds comes in.

An assignment of proceeds is an agreement between the seller and the bank that issues the bank guarantee. Essentially, it allows the seller to assign their right to receive payment from the buyer to the bank. The bank then agrees to use the proceeds from the bank guarantee to pay the seller. This provides an additional layer of protection for the seller, as they can be sure that they will receive payment as long as the bank guarantee is valid.

Here are some key points to keep in mind when using an assignment of proceeds:

1. An assignment of proceeds is not a substitute for a bank guarantee. It is simply an additional measure that can be taken to mitigate risk.

2. An assignment of proceeds can only be used if the bank that issued the bank guarantee agrees to it. Some banks may be hesitant to accept an assignment of proceeds, as it increases their own risk.

3. An assignment of proceeds can be either full or partial. A full assignment of proceeds means that the seller assigns their entire right to receive payment to the bank. A partial assignment of proceeds means that the seller assigns only a portion of their right to receive payment to the bank.

4. An assignment of proceeds can be revocable or irrevocable. A revocable assignment of proceeds means that the seller can revoke the assignment at any time. An irrevocable assignment of proceeds means that the seller cannot revoke the assignment without the bank's consent.

5. An assignment of proceeds can be especially useful in situations where the buyer's creditworthiness is in question. For example, if the buyer is located in a high-risk country or has a history of defaulting on payments, an assignment of proceeds can provide additional protection for the seller.

An assignment of proceeds is a valuable tool for mitigating risk in international trade transactions. By assigning their right to receive payment to the bank that issued the bank guarantee, sellers can ensure that they will receive payment even if the buyer defaults. While an assignment of proceeds may not be suitable for every situation, it is worth considering in situations where additional protection is needed.

Mitigating Risks with an Assignment of Proceeds - Bank Guarantee: Mitigating Risk with Assignment of Proceeds

When it comes to bank guarantees and mitigating risk , the legal framework for assigning proceeds is crucial. The assignment of proceeds is a process where a beneficiary assigns the proceeds of a letter of credit or bank guarantee to a third party. This process is usually done to secure payment to the third party. The legal framework for assigning proceeds varies from country to country, and it is important to understand the legal requirements before engaging in such an arrangement.

1. The uniform Commercial code (UCC) provides a legal framework for the assignment of proceeds in the United States. According to the UCC, an assignment of proceeds is effective if it is in writing and signed by the assignor. The assignor must also notify the issuer of the assignment and provide instructions for the payment of the proceeds.

2. In the European Union, the legal framework for the assignment of proceeds is governed by the United Nations Convention on the Assignment of Receivables in International Trade. This convention provides a legal framework for the assignment of proceeds in cross-border transactions and sets out the legal requirements for an effective assignment.

3. In some countries, the legal framework for the assignment of proceeds may be affected by local laws and regulations. For example, in China, the assignment of proceeds is governed by the General Principles of the Civil Law of the People's Republic of China. Under these principles, an assignment of proceeds is only effective if it is in writing and signed by the assignor and the assignee.

4. It is important to note that the legal framework for the assignment of proceeds may also be affected by the terms of the bank guarantee or letter of credit. For example, some bank guarantees may prohibit the assignment of proceeds without the prior consent of the issuer.

5. In conclusion, understanding the legal framework for the assignment of proceeds is crucial when it comes to bank guarantees and mitigating risk. This process can be complex, and it is important to seek legal advice before engaging in such an arrangement. By understanding the legal requirements and the terms of the bank guarantee or letter of credit, you can ensure that the assignment of proceeds is effective and secure.

Legal Framework for Assigning Proceeds - Bank Guarantee: Mitigating Risk with Assignment of Proceeds

The utilization of assignment of proceeds has become a popular approach for mitigating risks in international trade transactions. This method is beneficial for all parties involved in the transaction, including the buyer, seller, and the bank. It secures the payment for the seller and reduces the risk of non-payment for the buyer. The bank also benefits by providing a guarantee of payment, which enhances its credibility and safeguards its financial interests . It is a win-win situation for everyone involved.

Here are some insights on how utilizing assignment of proceeds can mitigate risk:

1. Reduces the risk of non-payment: One of the main benefits of using assignment of proceeds is that it reduces the risk of non-payment for the seller. The buyer's bank is obligated to pay the seller when the goods are shipped, and this payment is guaranteed by the bank's commitment to honor the assignment of proceeds. This provides a degree of security to the seller, who is assured of receiving payment for their goods.

2. Enhances credibility: The bank's commitment to honor the assignment of proceeds enhances its credibility in the eyes of the buyer and the seller. This, in turn, can lead to increased business opportunities for the bank , as clients are more likely to do business with a bank that has a reputation for reliability and security.

3. improves cash flow : Utilizing assignment of proceeds can also improve cash flow for the seller, as they are assured of receiving payment for their goods in a timely manner. This can help them to manage their finances more effectively and invest in their business.

4. Provides flexibility: Assignment of proceeds can be tailored to suit the needs of the parties involved in the transaction. For example, it can be used for both large and small transactions, and can be adapted to cover specific risks, such as political risk or currency risk .

The utilization of assignment of proceeds is a valuable tool for mitigating risks in international trade transactions. It provides security and peace of mind for all parties involved, and can help to enhance the credibility and financial stability of the bank . By utilizing this approach, buyers and sellers can conduct transactions with greater confidence, and banks can offer a more comprehensive suite of financial services to their clients.

Utilizing Assignment of Proceeds for Risk Mitigation - Bank Guarantee: Mitigating Risk with Assignment of Proceeds

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