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Can you summarize IACO 554.12507?
UNIFORM COMMERCIAL CODE > Choice of law.
Short Summary
This legal document, part of the Iowa Code’s Uniform Commercial Code, establishes rules for the governance of rights and obligations in payment orders and funds transfers. It states that the rights and obligations between the sender of a payment order and the receiving bank are governed by the law of the jurisdiction where the receiving bank is located. Similarly, the rights and obligations between the beneficiary’s bank and the beneficiary are governed by the law of the jurisdiction where the beneficiary’s bank is located. The issue of when payment is made in a funds transfer by the originator to the beneficiary is also governed by the law of the jurisdiction where the beneficiary’s bank is located. However, if the parties involved have made an agreement selecting the law of a particular jurisdiction to govern their rights and obligations, that chosen law will prevail. Additionally, a funds-transfer system rule may select the law of a particular jurisdiction to govern the rights and obligations between participating banks or the rights and obligations of parties involved in a funds transfer carried out through the system. In case of inconsistency between an agreement and a choice-of-law rule, the agreement prevails. If a funds transfer is made using multiple funds-transfer systems with conflicting choice-of-law rules, the law of the selected jurisdiction that has the most significant relationship to the matter in issue will govern.
Whom does it apply to?
Applies to parties involved in payment orders and funds transfers
What does it govern?
Governs the rights and obligations between the sender of a payment order and the receiving bank, the rights and obligations between the beneficiary's bank and the beneficiary, and the issue of when payment is made in a funds transfer
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Iowa