Section 4-A-507. Choice of Law.

(1) The following rules apply unless the affected parties otherwise
agree or subsection (3) applies:

(a) The rights and obligations between the sender of a payment

order and the receiving bank are governed by the law of the

jurisdiction in which the receiving bank is located.

(b) The rights and obligations between the beneficiary's bank and

the beneficiary are governed by the law of the jurisdiction

in which the beneficiary's bank is located.

(c) The issue of when payment is made pursuant to a funds

transfer by the originator to the beneficiary is governed by

the law of the jurisdiction in which the beneficiary's bank

is located.

(2) If the parties described in each paragraph of subsection (1) have
made an agreement selecting the law of a particular jurisdiction to
govern rights and obligations between each other, the law of that
jurisdiction governs those rights and obligations, whether or not the
payment order or the funds transfer bears a reasonable relation to that
jurisdiction.

(3) A funds-transfer system rule may select the law of a particular
jurisdiction to govern (i) rights and obligations between participating
banks with respect to payment orders transmitted or processed through
the system, or (ii) the rights and obligations of some or all parties to
a funds transfer any part of which is carried out by means of the
system. A choice of law made pursuant to clause (i) is binding on
participating banks. A choice of law made pursuant to clause (ii) is
binding on the originator, other sender, or a receiving bank having
notice that the funds-transfer system might be used in the funds
transfer and of the choice of law by the system when the originator,
other sender, or receiving bank issued or accepted a payment order. The
beneficiary of a funds transfer is bound by the choice of law if, when
the funds transfer is initiated, the beneficiary has notice that the
funds-transfer system might be used in the funds transfer and of the
choice of law by the system. The law of a jurisdiction selected pursuant
to this subsection may govern, whether or not that law bears a
reasonable relation to the matter in issue.

(4) In the event of inconsistency between an agreement under
subsection (2) and a choice-of-law rule under subsection (3), the
agreement under subsection (2) prevails.

(5) If a funds transfer is made by use of more than one funds-transfer
system and there is inconsistency between choice-of-law rules of the
systems, the matter in issue is governed by the law of the selected
jurisdiction that has the most significant relationship to the matter in
issue.