By Woolley H.B. No. 2585
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
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 and Commerce Code, is amended
1-7 by adding a Chapter 42 to read:
1-8 CHAPTER 42. EUROPEAN UNION CURRENCY CONVERSION
1-9 Sec. 42.001. SHORT TITLE. This chapter may be cited as the
1-10 European Union Currency Conversion Act.
1-11 Sec. 42.002. DEFINITIONS. In this chapter:
1-12 (1) "Euro", "euro", and "EUR" each means the currency
1-13 of the member states of the European Community, as amended by the
1-14 Treaty on European Union of February 7, 1992.
1-15 (2) "European Currency Unit", "ECU", and "XEU" each
1-16 means the currency basket that is from time to time used as the
1-17 unit of account of the European Community, as referred to in
1-18 Article 109q of the Treaty establishing the European Community, as
1-19 amended by the Treaty on European Union of February 7, 1992 and as
1-20 defined in Regulation No. 3320/94 of the Council of the European
1-21 Union.
2-1 (3) "Introduction of the euro" means and includes the
2-2 implementation from time to time of economic and monetary union in
2-3 member states of the European Union in accordance with the Treaty
2-4 on European Union of February 7, 1992.
2-5 Sec. 42.003. REFERENCES TO EUROPEAN CURRENCY UNIT. (a)
2-6 When the euro becomes the monetary unit of participating member
2-7 states of the European Union, references to the ECU in a contract,
2-8 security, or instrument that also refers to that definition of the
2-9 ECU shall be replaced by references to the euro. One euro is
2-10 equivalent to one ECU.
2-11 (b) References to the ECU in a contract, security, or
2-12 instrument that does not refer to that definition of the ECU shall
2-13 be construed as references to the currency basket that is from time
2-14 to time used as the unit of account of the European Community,
2-15 unless the contract, security, or instrument demonstrates that the
2-16 parties intended a different construction.
2-17 Sec. 42.004. CONTINUITY OF CONTRACT. (a) If a subject or
2-18 medium of payment of a contract, security, or instrument is a
2-19 currency that has been substituted or replaced by the euro, the
2-20 euro is a commercially reasonable substitute and substantial
2-21 equivalent that may be:
2-22 (1) used in determining the value of such currency; or
2-23 (2) tendered, in each case at the conversion rate
2-24 specified in, and otherwise calculated in accordance with, the
2-25 regulations adopted by the Council of the European Union.
3-1 (b) If a subject or medium of payment of a contract,
3-2 security, or instrument is the ECU, the euro is a commercially
3-3 reasonable substitute and substantial equivalent that may be:
3-4 (1) used in determining the value of the ECU; or
3-5 (2) tendered, in each case at the conversion rate
3-6 specified in, and otherwise calculated in accordance with, the
3-7 regulations adopted by the Council of the European Union.
3-8 (c) A person may perform any of the obligations described in
3-9 Subsection (a) or (b) in the currency or currencies originally
3-10 designated in the contract, security, or instrument (so long as
3-11 that currency or those currencies remain legal tender) or in euros,
3-12 but not in any other currency, whether or not that other currency:
3-13 (1) has been substituted or replaced by the euro; or
3-14 (2) is a currency that is considered a denomination of
3-15 the euro and has a fixed conversion rate with respect to the euro.
3-16 (d) The following occurrences neither discharge nor excuse
3-17 performance under a contract, security, or instrument, nor give a
3-18 party the right to unilaterally alter or terminate any contract,
3-19 security, or instrument:
3-20 (1) the introduction of the euro;
3-21 (2) the tender of euros in connection with any
3-22 obligation as described in Subsection (a) or (b);
3-23 (3) the determination of the value of any obligation
3-24 as described in Subsection (a) or (b); or
3-25 (4) the calculation or determination of the subject or
4-1 medium of payment of a contract, security, or instrument with
4-2 reference to interest rate or other basis that has been substituted
4-3 or replaced due to the introduction of the euro and that is a
4-4 commercially reasonable substitute and substantial equivalent.
4-5 Sec. 42.005. EFFECT OF AGREEMENTS. This chapter does not
4-6 alter or impair an agreement between parties that specifically
4-7 addresses the introduction of the euro.
4-8 Sec. 42.006. APPLICATION. (a) This chapter applies to all
4-9 contracts, securities, and instruments, including commercial
4-10 contracts governed by the laws of this State. This chapter
4-11 prevails to the extent of any conflict between this chapter and any
4-12 other law of this state.
4-13 (b) In circumstances of currency alteration, other than the
4-14 introduction of the euro, this chapter does not create any
4-15 inference or presumption regarding the validity or enforceability
4-16 of contracts, securities, or instruments denominated in whole or in
4-17 part in a currency affected by the alteration.
4-18 SECTION 2. The importance of this legislation and the
4-19 crowded condition of the calendars in both houses create an
4-20 emergency and an imperative public necessity that the
4-21 constitutional rule requiring bills to be read on three several
4-22 days in each house be suspended, and this rule is hereby suspended,
4-23 and that this Act take effect and be in force from and after its
4-24 passage, and it is so enacted.