76R12666 E
By Woolley H.B. No. 2585
Substitute the following for H.B. No. 2585:
By Woolley C.S.H.B. No. 2585
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the substitution of and equivalency for the single
1-3 currency of the European Union in certain contracts, securities,
1-4 and instruments.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Title 4, Business & Commerce Code, is amended by
1-7 adding Chapter 42 to read as follows:
1-8 CHAPTER 42. EUROPEAN UNION CURRENCY CONVERSION
1-9 Sec. 42.001. DEFINITIONS. In this chapter:
1-10 (1) "Euro" means the currency of the member states of
1-11 the European Community, as amended by the Treaty on European Union.
1-12 The term is abbreviated as EUR.
1-13 (2) "European currency unit" means the currency basket
1-14 that is periodically used as the unit of account of the European
1-15 Community, as defined by Regulation No. 3320/94 of the Council of
1-16 the European Union and as referred to in Article 109g of the treaty
1-17 establishing the European Community, as amended by the Treaty on
1-18 European Union. The term is abbreviated as ECU.
1-19 (3) "Treaty on European Union" means the Treaty on
1-20 European Union of February 7, 1992.
1-21 (4) "Introduction of the euro" means the periodic
1-22 implementation of economic and monetary union in member states of
1-23 the European Union in accordance with the Treaty on European Union.
1-24 Sec. 42.002. APPLICABILITY OF CHAPTER. (a) This chapter
2-1 applies to each contract, security, and instrument, including a
2-2 commercial contract, governed by the laws of this state.
2-3 (b) With respect to currency alteration, other than the
2-4 introduction of the euro, this chapter does not create any negative
2-5 inference or negative presumption regarding the validity or
2-6 enforceability of a contract, security, or instrument denominated
2-7 wholly or partly in a currency affected by the alteration.
2-8 Sec. 42.003. CONFLICTS OF LAW. This chapter prevails to the
2-9 extent of any conflict between this chapter and any other law of
2-10 this state.
2-11 Sec. 42.004. CONTINUITY OF CONTRACT. (a) If a subject or
2-12 medium of payment of a contract, security, or instrument is the
2-13 European currency unit or a currency that has been substituted or
2-14 replaced by the euro, the euro is a commercially reasonable
2-15 substitute and substantial equivalent that may be:
2-16 (1) used in determining the value of the European
2-17 currency unit or currency, as appropriate; or
2-18 (2) tendered, in each case, at the conversion rate
2-19 specified in, and otherwise computed in accordance with, the
2-20 regulations adopted by the Council of the European Union.
2-21 (b) A person may perform any obligation described by
2-22 Subsection (a) in euros or in the currency or currencies
2-23 originally designated in the contract, security, or instrument if
2-24 that currency or those currencies remain legal tender, but the
2-25 person may not perform those obligations in any other currency,
2-26 regardless of whether that other currency:
2-27 (1) has been substituted or replaced by the euro; or
3-1 (2) is considered a denomination of the euro and has a
3-2 fixed conversion rate with respect to the euro.
3-3 (c) The following occurrences are not considered a
3-4 discharge of, do not excuse performance under, and do not give a
3-5 party the right to unilaterally alter or terminate a contract,
3-6 security, or instrument:
3-7 (1) the introduction of the euro;
3-8 (2) the tender of euros in connection with any
3-9 obligation described by Subsection (a);
3-10 (3) the determination of the value of any obligation
3-11 described by Subsection (a); or
3-12 (4) the computation or determination of the subject or
3-13 medium of payment of a contract, security, or instrument with
3-14 reference to an interest rate or any other basis that has been
3-15 substituted or replaced because of the introduction of the euro and
3-16 that is a commercially reasonable substitute and substantial
3-17 equivalent.
3-18 Sec. 42.005. EFFECT ON CERTAIN AGREEMENTS. This chapter
3-19 does not alter or impair an agreement between parties that
3-20 specifically relates to the introduction of the euro.
3-21 SECTION 2. The importance of this legislation and the
3-22 crowded condition of the calendars in both houses create an
3-23 emergency and an imperative public necessity that the
3-24 constitutional rule requiring bills to be read on three several
3-25 days in each house be suspended, and this rule is hereby suspended,
3-26 and that this Act take effect and be in force from and after its
3-27 passage, and it is so enacted.