Section 4--102. Applicability

(1)  To  the extent that items within this Article are also within the
  scope of Articles 3 and 8, they are subject to the provisions  of  those
  Articles. In the event of conflict the provisions of this Article govern
  those  of Article 3 but the provisions of Article 8 govern those of this
  Article.
    (2) The liability of a bank for action or non-action 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  non-action 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.