By: Cain S.B. No. 1619
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the substitution of and equivalency for the single
1-2 currency of the European Union in certain contracts, securities,
1-3 and instruments.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Title 4, Business and Commerce Code, is amended
1-6 by adding a Chapter 42 to read:
1-7 CHAPTER 42. EUROPEAN UNION CURRENCY CONVERSION
1-8 Sec. 42.001. SHORT TITLE. This chapter may be cited as the
1-9 European Union Currency Conversion Act.
1-10 Sec. 42.002. DEFINITIONS. In this chapter:
1-11 (1) "Euro", "euro", and "EUR" each means the currency
1-12 of the member states of the European Community, as amended by the
1-13 Treaty on European Union of February 7, 1992.
1-14 (2) "European Currency Unit", "ECU", and "XEU" each
1-15 means the currency basket that is from time to time used as the
1-16 unit of account of the European Community, as referred to in
1-17 Article 109g of the Treaty establishing the European Community, as
1-18 amended by the Treaty on European Union of February 7, 1992 and as
1-19 defined in Regulation No. 3320/94 of the Council of the European
1-20 Union.
1-21 (3) "Introduction of the euro" means and includes the
1-22 implementation from time to time of economic and monetary union in
2-1 member states of the European Union in accordance with the Treaty
2-2 on European Union of February 7, 1992.
2-3 Sec. 42.003. REFERENCES TO EUROPEAN CURRENCY UNIT.
2-4 (a) When the euro becomes the monetary unit of participating
2-5 member states of the European Union, references to the ECU in a
2-6 contract, security, or instrument that also refers to that
2-7 definition of the ECU shall be replaced by references to the euro.
2-8 One euro is equivalent to one ECU.
2-9 (b) References to the ECU in a contract, security, or
2-10 instrument that does not refer to that definition of the ECU shall
2-11 be construed as references to the currency basket that is from time
2-12 to time used as the unit of account of the European Community,
2-13 unless the contract, security, or instrument demonstrates that the
2-14 parties intended a different construction.
2-15 Sec. 42.004. CONTINUITY OF CONTRACT. (a) If a subject or
2-16 medium of payment of a contract, security, or instrument is a
2-17 currency that has been substituted or replaced by the euro, the
2-18 euro is a commercially reasonable substitute and substantial
2-19 equivalent that may be:
2-20 (1) used in determining the value of such currency; or
2-21 (2) tendered, in each case at the conversion rate
2-22 specified in, and otherwise calculated in accordance with, the
2-23 regulations adopted by the Council of the European Union.
2-24 (b) If a subject or medium of payment of a contract,
2-25 security, or instrument is the ECU, the euro is a commercially
2-26 reasonable substitute and substantial equivalent that may be:
3-1 (1) used in determining the value of the ECU; or
3-2 (2) tendered, in each case at the conversion rate
3-3 specified in, and otherwise calculated in accordance with, the
3-4 regulations adopted by the Council of the European Union.
3-5 (c) A person may perform any of the obligations described in
3-6 Subsection (a) or (b) in the currency or currencies originally
3-7 designated in the contract, security, or instrument (so long as
3-8 that currency or those currencies remain legal tender) or in euros,
3-9 but not in any other currency, whether or not that other currency:
3-10 (1) has been substituted or replaced by the euro; or
3-11 (2) is a currently that is considered a denomination
3-12 of the euro and has a fixed conversion rate with respect to the
3-13 euro.
3-14 (d) The following occurrences neither discharge nor excuse
3-15 performance under a contract, security, or instrument, nor give a
3-16 party the right to unilaterally alter or terminate any contract,
3-17 security, or instrument:
3-18 (1) the introduction of the euro;
3-19 (2) the tender of euros in connection with any
3-20 obligation as described in Subsection (a) or (b);
3-21 (3) the determination of the value of any obligation
3-22 as described in Subsection (a) or (b); or
3-23 (4) the calculation or determination of the subject or
3-24 medium of payment of a contract, security, or instrument with
3-25 reference to interest rate or other basis that has been substituted
3-26 or replaced due to the introduction of the euro and that is a
4-1 commercially reasonable substitute and substantial equivalent.
4-2 Sec. 42.005. EFFECT OF AGREEMENTS. This chapter does not
4-3 alter or impair an agreement between parties that specifically
4-4 addresses the introduction of the euro.
4-5 Sec. 42.006. APPLICATION. (a) This chapter applies to all
4-6 contracts, securities, and instruments, including commercial
4-7 contracts governed by the laws of this State. This chapter
4-8 prevails to the extent of any conflict between this chapter and any
4-9 other law of this state.
4-10 (b) In circumstances of currency alteration, other than the
4-11 introduction of the euro, this chapter does not create any
4-12 inference or presumption regarding the validity or enforceability
4-13 of contracts, securities, or instruments denominated in whole or in
4-14 part in a currency affected by the alteration.
4-15 SECTION 2. The importance of this legislation and the
4-16 crowded condition of the calendars in both houses create an
4-17 emergency and an imperative public necessity that the
4-18 constitutional rule requiring bills to be read on three several
4-19 days in each house be suspended, and this rule is hereby suspended,
4-20 and that this Act take effect and be in force from and after its
4-21 passage, and it is so enacted.