§490:5-116  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 490:5-104 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) 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 (i) this article would
govern the liability of an issuer, nominated person, or adviser under
subsection (a) or (b), (ii) the relevant undertaking incorporates rules of
custom or practice, and (iii) 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
490:5-103(c).



(d)  If there is conflict between this article
and article 3, 4, 4A, or 9, this article 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). [L 1996, c 39, pt of §1]