§ 554.5116 — Choice of law and forum

Iowa § 554.5116

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

Text

1. 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 by the affected parties 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.
2. Unless subsection 1 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.
3. 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 subsection 4.
4. A branch of a bank is considered to be located at the address indicated in the branch’s
undertaking. If more than one address is indicated, the branch is considered to be located at
the address from which the undertaking was issued.
5. 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 Article would govern the liability of
an issuer, nominated person, or adviser under subsection 1 or 2, 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 554.5103, subsection 3.
6. If there is conflict between this Article and Article 3, 4, 9, or 12, this Article governs.
7. 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 1.

Legislative History

[C66, 71, 73, 75, 77, 79, 81, §554.5116]