Section 7-1-105

(1) Except as provided in this section, when a transaction bears a reasonable relation to this state and also to another state or nation the parties may agree that the law either of this state or of such other state or nation shall govern their rights and duties. Failing such agreement, this title applies to transactions bearing an appropriate relation to this state.

(2) Where one of the following provisions of this title specifies the applicable law, that provision governs and a contrary agreement is effective only to the extent permitted by the law (including the conflict of laws rules) so specified:

Rights of creditors against sold goods. Section 7-2-402.

Applicability of the article on leases. Sections 7-2A-105 and 7-2A-106.

Applicability of the article on bank deposits and collections. Section 7-4-102.

Governing law in the article on funds transfers. Section 7-4A-507.

Letters of Credit. Section 7-5-116.

Applicability of the article on investment securities. Section 7-8-106.

Law governing perfection, the effect of perfection or nonperfection, and the priority of security interests and agricultural liens. Sections 7-9A-301 through 7-9A-307.

(Acts 1965, No. 549, p. 811; Acts 1981, No. 81-312, p. 399; Acts 1992, 2nd Ex. Sess., No. 92-700, §601; Acts 1992, 2nd Ex. Sess., No. 92-701, p. 145, §2; Acts 1996, No. 96-742, p. 1241, § 4; Acts 1997, No. 97-702, p. 1427, §2; Act 2001-481, p. 647, §2.)