Idaho State Statutes - Idaho Attorney Directory

(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.

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