Forum Selection and Choice of Law

"Any provision in a contract that requires the prosecution of any action or the arbitration of any dispute that arises from the contract to be instituted or heard in another state is against public policy and is void and unenforceable. This prohibition does not apply to non‑consumer loan transactions or a dispute that is commenced in another state pursuant to a forum selection provision with the consent of all parties to the contract at the time that the dispute arises. N.C. Gen. Stat. § 22B-3

The parties to a business contract may agree in the business contract that North Carolina law shall govern their rights and duties in whole or in part. N.C. Gen. Stat. § 1G-3

A party to a business contract may bring an action in the courts of this State if the contract contains a provision where the parties agree that North Carolina law shall govern and a provision where the parties agree to litigate a dispute arising from the business contract in the courts of this State. N.C. Gen. Stat. § 1G-4"

Under this section, "a 'non-consumer' loan is one [that is] not extended to a natural person, and not used for 'family, household, personal, or agricultural purposes.'" L.C. Williams Oil Co. v. NAFCO Capital Corp., 130 N.C. App. 286 (1998). Thus, a forum selection clause in a commercial loan will likely be enforceable.