§ 26-1-5.1-116 — Liability of issuer, nominated person, or advisor; governing law; bank branches; rules of custom or practice; choice of forum

Indiana § 26-1-5.1-116

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 5.1: Letters of Credit

Text

(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 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.
(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 (1) address is indicated, the person is
considered to be located at the address from which the person's
undertaking was issued.
(c) 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 (d).
(d) A branch of a bank is considered to be located at the address
indicated in the branch's undertaking. If more than one (1) address is
indicated, the branch is considered to be located at the address from
which the undertaking was issued.
(e) 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) IC 26-1-5.1 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 IC 26-1-5.1 and those rules as
applied to that undertaking;
those rules govern except to the extent of any conflict with the
nonvariable provisions specified in IC 26-1-5.1-103(c).
(f) If there is conflict between IC 26-1-5.1 and IC 26-1-3.1, IC 26-1-4, IC 26-1-4.1, or IC 26-1-9.1, IC 26-1-5.1 governs.
(g) The forum for settling disputes arising out of an undertaking
within IC 26-1-5.1 may be chosen in the manner and with the binding
effect that governing law may be chosen in accordance with subsection
(a).

Legislative History

As added by P.L.183-1996, SEC.4. Amended by P.L.57-2000, SEC.31; P.L.199-2023, SEC.32.