2010 Pennsylvania Code
Title 13 - COMMERCIAL CODE
Chapter 51 - Letters of Credit
5116 - Choice of law and forum.

     § 5116.  Choice of law and forum.
        (a)  Express choice of law.--The liability of an issuer,
     nominated person or advisor 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 5104
     (relating to formal requirements) 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)  Governing law otherwise.--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)  Role of custom or practice.--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:
            (1)  this division would govern the liability of an
        issuer, nominated person or adviser under subsection (a) or
        (b);
            (2)  the relevant undertaking incorporates rules of
        custom or practice; and
            (3)  there is conflict between this division 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 5103(c) (relating to
     variation by agreement or undertaking).
        (d)  Conflict with certain other divisions.--If there is
     conflict between this division and Division 3 (relating to
     negotiable instruments), 4 (relating to bank deposits and
     collections), 4A (relating to funds transfers) or 9 (relating to
     secured transactions), this division governs.
        (e)  Forum.--The forum for settling disputes arising out of
     an undertaking within this division may be chosen in the manner
     and with the binding effect that governing law may be chosen in
     accordance with subsection (a).

        Special Provisions in Appendix.  See section 28 of Act 18 of
     2001 in the appendix to this title for special provisions
     relating to applicability of transitional provisions.
        Cross References.  Section 5116 is referred to in sections
     1301, 9306, 9700 of this title.