28-4-638. CHOICE OF LAW. (1) The following rules apply unless the affected parties otherwise agree or the provisions of subsection (3) of this section apply:
(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 paragraphs (a), (b) and (c) of subsection (1) of this section 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:
(a) rights and obligations between participating banks with respect to payment orders transmitted or processed through the system, or
(b) 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 paragraph (a) of this subsection is binding on participating banks. A choice of law made pursuant to paragraph (b) of this subsection 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) of this section and a choice-of-law rule under subsection (3) of this section, the agreement under subsection (2) of this section prevails.
(5) If a funds transfer is made by use of more than one (1) 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.
History:
[28-4-638, added 1991, ch. 135, sec. 1, p. 317.]
Structure Idaho Code
Title 28 - COMMERCIAL TRANSACTIONS
Chapter 4 - UNIFORM COMMERCIAL CODE — BANK DEPOSITS AND COLLECTIONS
Section 28-4-601 - SHORT TITLE.
Section 28-4-602 - SUBJECT MATTER.
Section 28-4-603 - PAYMENT ORDER — DEFINITIONS.
Section 28-4-604 - FUNDS TRANSFER — DEFINITIONS.
Section 28-4-605 - OTHER DEFINITIONS.
Section 28-4-606 - TIME PAYMENT ORDER IS RECEIVED.
Section 28-4-607 - FEDERAL RESERVE REGULATIONS AND OPERATING CIRCULARS.
Section 28-4-608 - RELATIONSHIP TO ELECTRONIC FUND TRANSFER ACT.
Section 28-4-609 - SECURITY PROCEDURE.
Section 28-4-610 - AUTHORIZED AND VERIFIED PAYMENT ORDERS.
Section 28-4-611 - UNENFORCEABILITY OF CERTAIN VERIFIED PAYMENT ORDERS.
Section 28-4-613 - ERRONEOUS PAYMENT ORDERS.
Section 28-4-615 - MISDESCRIPTION OF BENEFICIARY.
Section 28-4-616 - MISDESCRIPTION OF INTERMEDIARY BANK OR BENEFICIARY’S BANK.
Section 28-4-617 - ACCEPTANCE OF PAYMENT ORDER.
Section 28-4-618 - REJECTION OF PAYMENT ORDER.
Section 28-4-619 - CANCELLATION AND AMENDMENT OF PAYMENT ORDER.
Section 28-4-620 - LIABILITY AND DUTY OF RECEIVING BANK REGARDING UNACCEPTED PAYMENT ORDER.
Section 28-4-621 - EXECUTION AND EXECUTION DATE.
Section 28-4-622 - OBLIGATIONS OF RECEIVING BANK IN EXECUTION OF PAYMENT ORDER.
Section 28-4-623 - ERRONEOUS EXECUTION OF PAYMENT ORDER.
Section 28-4-624 - DUTY OF SENDER TO REPORT ERRONEOUSLY EXECUTED PAYMENT ORDER.
Section 28-4-625 - LIABILITY FOR LATE OR IMPROPER EXECUTION OR FAILURE TO EXECUTE PAYMENT ORDER.
Section 28-4-626 - PAYMENT DATE.
Section 28-4-627 - OBLIGATION OF SENDER TO PAY RECEIVING BANK.
Section 28-4-628 - PAYMENT BY SENDER TO RECEIVING BANK.
Section 28-4-629 - OBLIGATION OF BENEFICIARY’S BANK TO PAY AND GIVE NOTICE TO BENEFICIARY.
Section 28-4-630 - PAYMENT BY BENEFICIARY’S BANK TO BENEFICIARY.
Section 28-4-631 - PAYMENT BY ORIGINATOR TO BENEFICIARY — DISCHARGE OF UNDERLYING OBLIGATION.
Section 28-4-632 - VARIATION BY AGREEMENT AND EFFECT OF FUNDS-TRANSFER SYSTEM RULE.
Section 28-4-633 - CREDITOR PROCESS SERVED ON RECEIVING BANK — SETOFF BY BENEFICIARY’S BANK.
Section 28-4-634 - INJUNCTION OR RESTRAINING ORDER WITH RESPECT TO FUNDS TRANSFER.
Section 28-4-636 - PRECLUSION OF OBJECTION TO DEBIT OF CUSTOMER’S ACCOUNT.