Section 1--105. Territorial Application of the Act; Parties' Power to Choose Applicable Law

(1) 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.
  Failing such agreement this  Act  applies  to  transactions  bearing  an
  appropriate relation to this state.
    (2)  Where  one  of the following provisions of this Act 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 2--402.
  Applicability of the Article on Leases.           Sections 2-A-105
                                                    and 2-A--106.
  Applicability of the Article on Bank
  Deposits and Collections.                         Section 4--102.
  Governing Law in the Article on
  Fund Transfers.                                   Section 4-A-507.
  Letters of Credit.                                Section 5--116.
  Applicability of the Article on
  Investment Securities.                            Section 8--110.
  Law governing perfection, the
  effect of perfection or non-perfection,
  and the priority of security interests
  and agricultural liens.                           Sections 9--301 through
                                                    9--307.