47-5116. Choice of law and forum
A. The liability of an issuer, nominated person or adviser for action or omission
is governed by the law of the jurisdiction chosen by an agreement in the form of a record
signed or otherwise authenticated by the affected parties in the manner provided in
section 47-5104 or by a provision in the person's letter of credit, confirmation or other
undertaking. The jurisdiction whose law is chosen need not bear any relation to the
transaction.
B. Unless subsection A of this section applies, the liability of an issuer,
nominated person or adviser for action or omission is governed by the law of the
jurisdiction in which the person is located. The person is considered to be located at
the address indicated in the person's undertaking. If more than one address is
indicated, the person is considered to be located at the address from which the person's
undertaking was issued. For the purpose of jurisdiction, choice of law and recognition
of interbranch letters of credit, but not enforcement of a judgment, all branches of a
bank are considered separate juridical entities and a bank is considered to be located at
the place where its relevant branch is considered to be located under this subsection.
C. Except as otherwise provided in this subsection, the liability of an issuer,
nominated person or adviser is governed by any rules of custom or practice, such as the
uniform customs and practice for documentary credits, to which the letter of credit,
confirmation or other undertaking is expressly made subject. If this chapter would
govern the liability of an issuer, nominated person or adviser under subsection A or B of
this section, the relevant undertaking incorporates rules of custom or practice, and
there is conflict between this article and those rules as applied to that undertaking,
those rules govern except to the extent of any conflict with the nonvariable provisions
specified in section 47-5103, subsection C.
D. If there is conflict between this chapter and chapter 3, 4, 4A or 9 of this
title, this chapter governs.
E. The forum for settling disputes arising out of an undertaking within this
article may be chosen in the manner and with the binding effect that governing law may be
chosen in accordance with subsection A of this section.
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