CoL applicable to debt obligation presumption is that the situs of the debt is the jurisdiction with the most significant contacts.
Court said situs of debt was NY, where importers and collecting bank were. Not where Cuban creditor was. Place where payment was located.
“owners accounts receivable had their situs in the US rather than in Cuba at the time of intervention…”
Choice of law rule for contractual obligation in form of debt (unless otherwise specified) = place of performance (most significant contacts) performance means place of payment jurisdiction that has power to enforce and collect that debt
US law applicable. Act of State doctrine does not require us to treat expropriation without compensation as valid.
Lesson is to make sure you have choice of law provision. Borrower’s jurisdiction is the one that is more likely to impose moratorium. So specify law of place of lender.
