2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 5 - Letters of Credit › Section 55-5-116 - Choice of law and forum. (Effective January 1, 2024.)

(a) 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 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) Unless Subsection (a) of this section 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.
(c) 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 Subsection (d) of this section.
(d) A branch of a bank is considered to be located at the address indicated in the branch's undertaking. If more than one address is indicated, the branch is considered to be located at the address from which the undertaking was issued.
(e) 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 (i) this article would govern the liability of an issuer, nominated person or adviser under Subsection (a) or (b) of this section; (ii) the relevant undertaking incorporates rules of custom or practice; and (iii) 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 Subsection (c) of Section 55-5-103 NMSA 1978.
(f) If there is conflict between this article and Chapter 55, Article 3, 4, 4A or 9 NMSA 1978, this article governs.
(g) The forum for settling disputes arising out of an undertaking within this article may be chosen in the manner and with the binding effect that governing law may be chosen in accordance with Subsection (a) of this section.
History:
1978 Comp., § 55-5-116, enacted by Laws 1997, ch. 75, § 18; 2023, ch. 142, § 35.
ANNOTATIONS
The 2023 amendment,
effective January 1, 2024, provided that a branch of a bank is considered to be located at the address indicated in the branch's undertaking; in Subsection (a), deleted "or otherwise authenticated by the affected parties in the manner provided in Section 55-5-104 NMSA 1978"; added a new Subsection (d) and redesignated former Subsections (c) through (e) as Subsections (e) through (g), respectively; in Subsection (e), after "specified in", deleted "Section 55-5-103(c)" and added "Subsection (c) of Section 55-5-103"; and in Subsection (f), after "article and", added "Chapter 55", and after "9", added "NMSA 1978".