The reason is that a statute is always understood to apply to contracts made within, and not outside, its territory.

Explanation

A statute is understood to govern contracts made within its territory, not those made outside it — legislative power over contractual obligations stops at the territorial border.

Where this applies

• A Texas statute regulating insurance contracts applies to policies written in Texas but has no power over a policy written in Oklahoma, even if the insured now lives in Texas.
• A California labor law governs employment contracts made in California but does not reach an employment agreement signed in Nevada.
• A New York usury statute applies to loans originated in New York but not to a loan contracted in Connecticut, even if the borrower later moves to New York.