2007 Minnesota Statutes

336.5-116 MS 1996 [Repealed, 1997 c 11 art 1 s 20]
336.5-116 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 336.5-104 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 336.5-103(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).
History: 1997 c 11 art 1 s 16