Section 4-A-507. Choice of Law.\n (1) The following rules apply unless the affected parties otherwise\nagree or subsection (3) applies:\n (a) The rights and obligations between the sender of a payment\n order and the receiving bank are governed by the law of the\n jurisdiction in which the receiving bank is located.\n (b) The rights and obligations between the beneficiary's bank and\n the beneficiary are governed by the law of the jurisdiction\n in which the beneficiary's bank is located.\n (c) The issue of when payment is made pursuant to a funds\n transfer by the originator to the beneficiary is governed by\n the law of the jurisdiction in which the beneficiary's bank\n is located.\n (2) If the part
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Section 4-A-507. Choice of Law.\n (1) The following rules apply unless the affected parties otherwise\nagree or subsection (3) applies:\n (a) The rights and obligations between the sender of a payment\n order and the receiving bank are governed by the law of the\n jurisdiction in which the receiving bank is located.\n (b) The rights and obligations between the beneficiary's bank and\n the beneficiary are governed by the law of the jurisdiction\n in which the beneficiary's bank is located.\n (c) The issue of when payment is made pursuant to a funds\n transfer by the originator to the beneficiary is governed by\n the law of the jurisdiction in which the beneficiary's bank\n is located.\n (2) If the parties described in each paragraph of subsection (1) have\nmade an agreement selecting the law of a particular jurisdiction to\ngovern rights and obligations between each other, the law of that\njurisdiction governs those rights and obligations, whether or not the\npayment order or the funds transfer bears a reasonable relation to that\njurisdiction.\n (3) A funds-transfer system rule may select the law of a particular\njurisdiction to govern (i) rights and obligations between participating\nbanks with respect to payment orders transmitted or processed through\nthe system, or (ii) the rights and obligations of some or all parties to\na funds transfer any part of which is carried out by means of the\nsystem. A choice of law made pursuant to clause (i) is binding on\nparticipating banks. A choice of law made pursuant to clause (ii) is\nbinding on the originator, other sender, or a receiving bank having\nnotice that the funds-transfer system might be used in the funds\ntransfer and of the choice of law by the system when the originator,\nother sender, or receiving bank issued or accepted a payment order. The\nbeneficiary of a funds transfer is bound by the choice of law if, when\nthe funds transfer is initiated, the beneficiary has notice that the\nfunds-transfer system might be used in the funds transfer and of the\nchoice of law by the system. The law of a jurisdiction selected pursuant\nto this subsection may govern, whether or not that law bears a\nreasonable relation to the matter in issue.\n (4) In the event of inconsistency between an agreement under\nsubsection (2) and a choice-of-law rule under subsection (3), the\nagreement under subsection (2) prevails.\n (5) If a funds transfer is made by use of more than one funds-transfer\nsystem and there is inconsistency between choice-of-law rules of the\nsystems, the matter in issue is governed by the law of the selected\njurisdiction that has the most significant relationship to the matter in\nissue.\n