State Codes and Statutes
Statutes > Utah > Title-70a > Chapter-04a > 70a-4a-50770A-4a-507. Choice of law.
(1) The following rules apply unless the affected parties otherwise agree or Subsection(3) applies:
(a) The rights and obligations between the sender of a payment order and the receivingbank are governed by the law of the jurisdiction in which the receiving bank is located.
(b) The rights and obligations between the beneficiary's bank and the beneficiary aregoverned by the law of the jurisdiction in which the beneficiary's bank is located.
(c) The issue of when payment is made pursuant to a funds transfer by the originator tothe beneficiary is governed by the law of the jurisdiction in which the beneficiary's bank islocated.
(2) If the parties described in Subsections (1)(a), (b), and (c) have made an agreementselecting the law of a particular jurisdiction to govern rights and obligations between each other,the law of that jurisdiction governs those rights and obligations, whether or not the paymentorder or the funds transfer bears a reasonable relation to that jurisdiction.
(3) (a) A funds transfer system rule may select the law of a particular jurisdiction togovern:
(i) rights and obligations between participating banks with respect to payment orderstransmitted or processed through the system; or
(ii) the rights and obligations of some or all parties to a funds transfer, any part of whichis carried out by means of the system.
(b) A choice of law made pursuant to Subsection (3)(a)(i) is binding on participatingbanks. A choice of law made pursuant to Subsection (3)(a)(ii) is binding on the originator, othersender, or a receiving bank having notice that the funds transfer system might be used in thefunds transfer and 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 funds transfer is boundby the choice of law if, at the time the funds transfer is initiated, the beneficiary has notice thatthe funds transfer system might be used in the funds transfer and of the choice of law by thesystem. The law of a jurisdiction selected pursuant to this Subsection (3) may govern whether ornot that law bears a reasonable relation to the matter in issue.
(4) In the event of inconsistency between an agreement under Subsection (2) and achoice of law rule under Subsection (3), the agreement under Subsection (2) prevails.
(5) If a funds transfer is made by use of more than one funds transfer system and there isinconsistency between choice of law rules of the systems, the matter in issue is governed by thelaw of the selected jurisdiction that has the most significant relationship to the matter in issue.
Amended by Chapter 324, 2010 General Session
