§ 41-05-16 — (5-116) Choice of law and forum

North Dakota § 41-05-16

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-05: Letters of Credit

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:
a. This chapter would govern the liability of an issuer, nominated person, or adviser
under subsection 1 or 2;
b. The relevant undertaking incorporates rules of custom or practice; and
c. There is conflict between this chapter and those rules as applied to that
undertaking, those rules govern except to the extent of any conflict with the
nonvariable provisions specified in subsection 3 of section 41-05-03.
6. If there is conflict between this chapter and chapter 41-03, 41-04, 41-04.1, or 41-09,
this chapter governs.
7. The forum for settling disputes arising out of an undertaking within this chapter may be
chosen in the manner and with the binding effect that governing law may be chosen in
accordance with subsection 1.