(a) The following rulesapply unless the affected parties otherwise agree or subsection (c) applies:
(1) The rights andobligations between the sender of a payment order and the receiving bank aregoverned by the law of the jurisdiction in which the receiving bank is located.
(2) The rights andobligations between the beneficiary's bank and the beneficiary are governed bythe law of the jurisdiction in which the beneficiary's bank is located.
(3) The issue of whenpayment is made pursuant to a funds transfer by the originator to thebeneficiary is governed by the law of the jurisdiction in which thebeneficiary's bank is located.
(b) If the partiesdescribed in each paragraph of subsection (a) have made an agreement selectingthe law of a particular jurisdiction to govern rights and obligations betweeneach other, the law of that jurisdiction governs those rights and obligations,whether or not the payment order or the funds transfer bears a reasonablerelation to that jurisdiction.
(c) A funds‑transfersystem rule may select the law of a particular jurisdiction to govern (i)rights and obligations between participating banks with respect to paymentorders transmitted or processed through the system, or (ii) the rights andobligations of some or all parties to a funds transfer any part of which iscarried out by means of the system. A choice of law made pursuant to clause(i) is binding on participating banks. A choice of law made pursuant to clause(ii) is binding on the originator, other sender, or a receiving bank havingnotice that the funds‑transfer system might be used in the funds transferand of the choice of law by the system when the originator, other sender, orreceiving bank issued or accepted a payment order. The beneficiary of a fundstransfer is bound by the choice of law if, when the funds transfer isinitiated, the beneficiary has notice that the funds‑transfer systemmight be used in the funds transfer and of the choice of law by the system. The law of a jurisdiction selected pursuant to this subsection may govern,whether or not that law bears a reasonable relation to the matter in issue.
(d) In the event ofinconsistency between an agreement under subsection (b) and a choice‑of‑lawrule under subsection (c), the agreement under subsection (b) prevails.
(e) If a funds transferis made by use of more than one funds‑transfer system and there isinconsistency between choice‑of‑law rules of the systems, thematter in issue is governed by the law of the selected jurisdiction that hasthe most significant relationship to the matter in issue. (1993,c. 157, s. 1.)
(a) The following rulesapply unless the affected parties otherwise agree or subsection (c) applies:
(1) The rights andobligations between the sender of a payment order and the receiving bank aregoverned by the law of the jurisdiction in which the receiving bank is located.
(2) The rights andobligations between the beneficiary's bank and the beneficiary are governed bythe law of the jurisdiction in which the beneficiary's bank is located.
(3) The issue of whenpayment is made pursuant to a funds transfer by the originator to thebeneficiary is governed by the law of the jurisdiction in which thebeneficiary's bank is located.
(b) If the partiesdescribed in each paragraph of subsection (a) have made an agreement selectingthe law of a particular jurisdiction to govern rights and obligations betweeneach other, the law of that jurisdiction governs those rights and obligations,whether or not the payment order or the funds transfer bears a reasonablerelation to that jurisdiction.
(c) A funds‑transfersystem rule may select the law of a particular jurisdiction to govern (i)rights and obligations between participating banks with respect to paymentorders transmitted or processed through the system, or (ii) the rights andobligations of some or all parties to a funds transfer any part of which iscarried out by means of the system. A choice of law made pursuant to clause(i) is binding on participating banks. A choice of law made pursuant to clause(ii) is binding on the originator, other sender, or a receiving bank havingnotice that the funds‑transfer system might be used in the funds transferand of the choice of law by the system when the originator, other sender, orreceiving bank issued or accepted a payment order. The beneficiary of a fundstransfer is bound by the choice of law if, when the funds transfer isinitiated, the beneficiary has notice that the funds‑transfer systemmight be used in the funds transfer and of the choice of law by the system. The law of a jurisdiction selected pursuant to this subsection may govern,whether or not that law bears a reasonable relation to the matter in issue.
(d) In the event ofinconsistency between an agreement under subsection (b) and a choice‑of‑lawrule under subsection (c), the agreement under subsection (b) prevails.
(e) If a funds transferis made by use of more than one funds‑transfer system and there isinconsistency between choice‑of‑law rules of the systems, thematter in issue is governed by the law of the selected jurisdiction that hasthe most significant relationship to the matter in issue. (1993,c. 157, s. 1.)
(a) The following rulesapply unless the affected parties otherwise agree or subsection (c) applies:
(1) The rights andobligations between the sender of a payment order and the receiving bank aregoverned by the law of the jurisdiction in which the receiving bank is located.
(2) The rights andobligations between the beneficiary's bank and the beneficiary are governed bythe law of the jurisdiction in which the beneficiary's bank is located.
(3) The issue of whenpayment is made pursuant to a funds transfer by the originator to thebeneficiary is governed by the law of the jurisdiction in which thebeneficiary's bank is located.
(b) If the partiesdescribed in each paragraph of subsection (a) have made an agreement selectingthe law of a particular jurisdiction to govern rights and obligations betweeneach other, the law of that jurisdiction governs those rights and obligations,whether or not the payment order or the funds transfer bears a reasonablerelation to that jurisdiction.
(c) A funds‑transfersystem rule may select the law of a particular jurisdiction to govern (i)rights and obligations between participating banks with respect to paymentorders transmitted or processed through the system, or (ii) the rights andobligations of some or all parties to a funds transfer any part of which iscarried out by means of the system. A choice of law made pursuant to clause(i) is binding on participating banks. A choice of law made pursuant to clause(ii) is binding on the originator, other sender, or a receiving bank havingnotice that the funds‑transfer system might be used in the funds transferand of the choice of law by the system when the originator, other sender, orreceiving bank issued or accepted a payment order. The beneficiary of a fundstransfer is bound by the choice of law if, when the funds transfer isinitiated, the beneficiary has notice that the funds‑transfer systemmight be used in the funds transfer and of the choice of law by the system. The law of a jurisdiction selected pursuant to this subsection may govern,whether or not that law bears a reasonable relation to the matter in issue.
(d) In the event ofinconsistency between an agreement under subsection (b) and a choice‑of‑lawrule under subsection (c), the agreement under subsection (b) prevails.
(e) If a funds transferis made by use of more than one funds‑transfer system and there isinconsistency between choice‑of‑law rules of the systems, thematter in issue is governed by the law of the selected jurisdiction that hasthe most significant relationship to the matter in issue. (1993,c. 157, s. 1.)
