Section 1-301 - Territorial applicability; parties' power to choose applicable law(a) Except as provided hereafter 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.(b) In the absence of an agreement effective under subsection (a) of this section, and except as provided in subsection (c), this title applies to transactions bearing an appropriate relation to this state.(c) If 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 so specified: (1) Section 2-402. Rights of Creditors Against Sold Goods;(2) Sections 2A-105 and 2A-106. Applicability of this Article on Leases;(3) Section 4-102. Applicability of the Article on Bank Deposits;(4) Section 4A-507. Governing Law in the Article on Funds Transfers;(5) Section 5-116. Letters of Credit;(6) Section 8-110. Applicability of the Article on Investment Securities;(7) Sections 9-301 through 9-307. Law Governing Perfection, the Effect of Perfection or Nonperfection, and the Priority of Security Interests.Added 2007, No. 99 (Adj. Sess.), § 2.