KRS 355.5-116: Choice of law and forum.

(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, con firmation, or other undertaking. The jurisdiction whose law is chosen

need not bear any relation to the transaction.

(2) Unless subsection (1) of this section applies, the liability of an issuer, nominated

person, or adviser for action or omission is gover ned 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.

(3) For purposes 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 b ank is considered to be located at the place where

its relevant branch is considered to be located under subsection (4) of this section.

(4) A branch of a bank is considered to be located at the address indicated in the

branch's undertaking. If more than o ne (1) address is indicated, the branch is

considered to be located at the address from which the undertaking was issued.

(5) (a) Except as otherwise provided in this subsection, the liability of an issuer,

nominated person, or adviser is governed by any r ules 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.

(b) If this article would govern the liability of an issuer, nominate d person, or

adviser under subsection (1) or (2) of this section, the relevant undertaking

incorporates rules of custom or practice, and there is conflict between this

article and those rules as applied to that undertaking, those rules govern

except to the extent of any conflict with the nonvariable provisions specified

in KRS 355.5-103(3).

(6) If there is conflict between this article and Article 3, 4, 4A, or 9 of this chapter, this

article governs.

(7) The forum for settling disputes arising out of an und ertaking within this article may

be chosen in the manner and with the binding effect that governing law may be

chosen in accordance with subsection (1) of this section.