1-1     By:  Woolley (Senate Sponsor - Cain)                  H.B. No. 2585
 1-2           (In the Senate - Received from the House May 10, 1999;
 1-3     May 10, 1999, read first time and referred to Committee on Economic
 1-4     Development; May 14, 1999, reported favorably by the following
 1-5     vote:  Yeas 4, Nays 0; May 14, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the substitution of and equivalency for the single
 1-9     currency of the European Union in certain contracts, securities,
1-10     and instruments.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Title 4, Business & Commerce Code, is amended by
1-13     adding Chapter 42 to read as follows:
1-14               CHAPTER 42.  EUROPEAN UNION CURRENCY CONVERSION
1-15           Sec. 42.001.  DEFINITIONS.  In this chapter:
1-16                 (1)  "Euro" means the currency of the member states of
1-17     the European Community, as amended by the Treaty on European Union.
1-18     The term is abbreviated as EUR.
1-19                 (2)  "European currency unit" means the currency basket
1-20     that is periodically used as the unit of account of the European
1-21     Community,   as defined by Regulation No. 3320/94 of the Council of
1-22     the European Union and as referred to in Article 109g of the treaty
1-23     establishing the European Community, as amended by the Treaty on
1-24     European Union.  The term is abbreviated as ECU.
1-25                 (3)  "Treaty on European Union" means the Treaty on
1-26     European Union of February 7, 1992.
1-27                 (4)  "Introduction of the euro" means the periodic
1-28     implementation of economic and monetary union in member states of
1-29     the European Union in accordance with the Treaty on European Union.
1-30           Sec. 42.002.  APPLICABILITY OF CHAPTER.  (a)  This chapter
1-31     applies to each contract, security, and instrument, including a
1-32     commercial contract, governed by the laws of this state.
1-33           (b)  With respect to currency alteration, other than the
1-34     introduction of the euro, this chapter does not create any negative
1-35     inference or negative presumption regarding the validity or
1-36     enforceability of a contract, security, or instrument denominated
1-37     wholly or partly in a currency affected by the alteration.
1-38           Sec. 42.003.  CONFLICTS OF LAW.  This chapter prevails to the
1-39     extent of any conflict between this chapter and any other law of
1-40     this state.
1-41           Sec. 42.004.  CONTINUITY OF CONTRACT.  (a)  If a subject or
1-42     medium of payment of a contract, security, or instrument is the
1-43     European currency unit or a currency that has been substituted or
1-44     replaced by the euro, the euro is a commercially reasonable
1-45     substitute and substantial equivalent that may be:
1-46                 (1)  used in determining the value of the European
1-47     currency unit or currency, as appropriate; or
1-48                 (2)  tendered, in each case, at the conversion rate
1-49     specified in, and otherwise computed in accordance with, the
1-50     regulations adopted by the Council of the European Union.
1-51           (b)  A person may perform any obligation described by
1-52     Subsection (a)  in euros or in the currency or currencies
1-53     originally designated in the contract, security, or instrument if
1-54     that currency or those currencies remain legal tender, but the
1-55     person may not perform those obligations in any other currency,
1-56     regardless of whether that other currency:
1-57                 (1)  has been substituted or replaced by the euro; or
1-58                 (2)  is considered a denomination of the euro and has a
1-59     fixed conversion rate with respect to the euro.
1-60           (c)  The following occurrences are not considered a
1-61     discharge of, do not excuse performance under, and do not give a
1-62     party the right to unilaterally alter or terminate a contract,
1-63     security, or instrument:
1-64                 (1)  the introduction of the euro;
 2-1                 (2)  the tender of euros in connection with any
 2-2     obligation described by Subsection (a);
 2-3                 (3)  the determination of the value of any obligation
 2-4     described by Subsection (a); or
 2-5                 (4)  the computation or determination of the subject or
 2-6     medium of payment of a contract, security, or instrument with
 2-7     reference to an interest rate or any other basis that has been
 2-8     substituted or replaced because of the introduction of the euro and
 2-9     that is a commercially reasonable substitute and substantial
2-10     equivalent.
2-11           Sec. 42.005.  EFFECT ON  CERTAIN AGREEMENTS.  This chapter
2-12     does not alter or impair an agreement between parties that
2-13     specifically relates to the introduction of the euro.
2-14           SECTION 2.  The importance of this legislation and the
2-15     crowded condition of the calendars in both houses create an
2-16     emergency and an imperative public necessity that the
2-17     constitutional rule requiring bills to be read on three several
2-18     days in each house be suspended, and this rule is hereby suspended,
2-19     and that this Act take effect and be in force from and after its
2-20     passage, and it is so enacted.
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