§ 25-5-116. Choice of law and forum. - North Carolina Statutes

§25‑5‑116.  Choice of law and forum.

(a)        The liability of anissuer, nominated person, or adviser for action or omission is governed by thelaw of the jurisdiction chosen by an agreement in the form of a record signedor otherwise authenticated by the affected parties in the manner provided inG.S. 25‑5‑104 or by a provision in the person's letter of credit,confirmation, or other undertaking. The jurisdiction whose law is chosen neednot bear any relation to the transaction.

(b)        Unless subsection(a) of this section applies, the liability of an issuer, nominated person, oradviser for action or omission is governed by the law of the jurisdiction inwhich the person is located. The person is considered to be located at theaddress indicated in the person's undertaking. If more than one address isindicated, the person is considered to be located at the address from which theperson's undertaking was issued. For the purpose of jurisdiction, choice oflaw, and recognition of interbranch letters of credit, but not enforcement of ajudgment, all branches of a bank are considered separate juridical entities anda bank is considered to be located at the place where its relevant branch isconsidered to be located under this subsection.

(c)        Except as otherwiseprovided in this subsection, the liability of an issuer, nominated person, oradviser is governed by any rules of custom or practice, such as the UniformCustoms and Practice for Documentary Credits, to which the letter of credit,confirmation, or other undertaking is expressly made subject. If (i) thisArticle would govern the liability of an issuer, nominated person, or adviserunder subsection (a) or (b) of this section, (ii) the relevant undertakingincorporates rules of custom or practice, and (iii) there is conflict betweenthis Article and those rules as applied to that undertaking, those rules governexcept to the extent of any conflict with the nonvariable provisions specifiedin G.S. 25‑5‑103(c).

(d)        If there isconflict between this Article and Article 3, 4, 4A, or 9 of this Chapter, thisArticle governs.

(e)        NotwithstandingG.S. 22B‑3, the forum for settling disputes arising out of an undertakingwithin this Article may be chosen in the manner and with the binding effectthat governing law may be chosen in accordance with subsection (a) of thissection. (1999‑73, s. 1.)