1. (a) To the extent that items within this article are also within Articles 3 and 8 of this title, they are subject to those articles. If there is conflict, this article governs Article 3, but Article 8 governs this article.

2. (b) The liability of a bank for action or nonaction with respect to any item handled by it for purposes of presentment, payment or collection is governed by the law of the place where the bank is located. In the case of action or nonaction by or at a branch or separate office of a bank, its liability is governed by the law of the place where the branch or separate office is located.

   Oklahoma Code Comment

   In addition to the conflicts identified in this Section, items within Article 4 may be involved in an Article. In that case, the fraud exception in Section

   5-114 may give way if the issuer of the letter of credit has accepted the drain. See All Service Exportacao, Importacao Comercio, S.A. v. Banco Bamerindus Do Brazil, S,A., 921 F.2d 32 (2d Cir. 1990).

Laws 1961, SB 36, p. 121, §