Home Foreclosures: 17.4.9.2 Choice of Law Clauses
Another way that a rescuer may try to avoid state credit and usury laws is by purporting to operate under the laws of another state.599 The rescuer might, for example, insert a clause in the documents the homeowner signs, stating that the transaction will be governed by the laws of some state that imposes few restrictions. Choice of law rules vary from state to state, but such a clause is unlikely to be given effect if the chosen state does not have a substantial relationship to the transaction.