{"data":{"id":"us-ky/krs-355.5-116","jurisdiction":"us-ky","citation":"KRS 355.5-116","heading":"Choice of law and forum.","body":"(1) The liability of an issuer, nominated person, or adviser for action or omission is\ngoverned by the law of the jurisdiction chosen by an agreement in the form of a\nrecord signed by the affected parties or by a provision in the person's letter of\ncredit, con firmation, or other undertaking. The jurisdiction whose law is chosen\nneed not bear any relation to the transaction.\n(2) Unless subsection (1) of this section applies, the liability of an issuer, nominated\nperson, or adviser for action or omission is gover ned by the law of the jurisdiction\nin which the person is located. The person is considered to be located at the address\nindicated in the person's undertaking. If more than one (1) address is indicated, the\nperson is considered to be located at the address  from which the person's\nundertaking was issued.\n(3) For purposes of jurisdiction, choice of law, and recognition of interbranch letters of\ncredit, but not enforcement of a judgment, all branches of a bank are considered\nseparate juridical entities and a b ank is considered to be located at the place where\nits relevant branch is considered to be located under subsection (4) of this section.\n(4) A branch of a bank is considered to be located at the address indicated in the\nbranch's undertaking. If more than o ne (1) address is indicated, the branch is\nconsidered to be located at the address from which the undertaking was issued.\n(5) (a) Except as otherwise provided in this subsection, the liability of an issuer,\nnominated person, or adviser is governed by any r ules of custom or practice,\nsuch as the Uniform Customs and Practice for Documentary Credits, to which\nthe letter of credit, confirmation, or other undertaking is expressly made\nsubject.\n(b) If this article would govern the liability of an issuer, nominate d person, or\nadviser under subsection (1) or (2) of this section, the relevant undertaking\nincorporates rules of custom or practice, and there is conflict between this\narticle and those rules as applied to that undertaking, those rules govern\nexcept to the  extent of any conflict with the nonvariable provisions specified\nin KRS 355.5-103(3).\n(6) If there is conflict between this article and Article 3, 4, 4A, or 9 of this chapter, this\narticle governs.\n(7) The forum for settling disputes arising out of an und ertaking within this article may\nbe chosen in the manner and with the binding effect that governing law may be\nchosen in accordance with subsection (1) of this section.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55660","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:46Z","sha256":"6c5c41033d0e7fe0bc1933af42452f8f286e89ee19f98895ba7909e6f503f4ba","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.5-115","next":"us-ky/krs-355.5-117"},"notice":"GroundRules: Original legal text. Not legal advice."}