[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
| [ Engrossed ] | [ Enrolled ] | [ House Amendment 001 ] |
90_HB1418
New Act
Creates the Euro Conversion Act. Defines the euro as the
single currency of the European Union. Provides that the
euro shall be a commercially reasonable substitute for any
currency for which it becomes a substitute, the interest rate
established for the euro shall be a commercially reasonable
substitute for the interest rate of any currency for which it
becomes a substitute, and that the introduction of the euro
and the changes made as a result does not discharge or excuse
performance under a contract, security, or instrument.
Provides that the parties may agree to alter the requirements
of this Act by contract, and that any reference to the ECU in
a contract will be rebuttably presumed to be a reference to
the currency basket that is from time to time used as the
unit of account of the European Union. Effective
immediately.
LRB9004773SMcw
LRB9004773SMcw
1 AN ACT concerning currency changes in Europe.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Euro Conversion Act.
6 Section 5. Definitions. As used in this Act:
7 "Euro" means the single currency of the European Union.
8 "Introduction of the euro" means the implementation from
9 time to time of the third stage of Economic and Monetary
10 Union in member states of the European Union pursuant to the
11 Treaty on European Union of February 7, 1992.
12 "ECU" or "European Currency Unit" means the currency
13 basket that is from time to time used as the unit of account
14 of the European Union as defined in European Council
15 Regulation No. 3320/94.
16 Section 10. Continuity of contract.
17 (a) If a subject or medium of payment of a contract,
18 security, or instrument is a currency that has been
19 substituted or replaced by the euro, the euro shall be a
20 commercially reasonable substitute and substantial equivalent
21 that may be tendered at the conversion rate specified in, and
22 otherwise calculated in accordance with, the regulations
23 adopted by the Council of the European Union.
24 (b) If a subject or medium of payment of a contract,
25 security, or instrument is the ECU, the euro shall be a
26 commercially reasonable substitute and substantial equivalent
27 that may be tendered at the conversion rate specified in, and
28 otherwise calculated in accordance with, the regulations
29 adopted by the Council of the European Union.
30 (c) If a subject or medium of payment of a contract,
-2- LRB9004773SMcw
1 security, or instrument is a currency basket (other than the
2 ECU) that consists of one or more currencies that have been
3 substituted or replaced by the euro, the euro shall be a
4 commercially reasonable substitute and substantial equivalent
5 for the substituted or replaced currencies and may be
6 tendered in lieu of these currencies at the conversion rates
7 specified in, and otherwise calculated in accordance with,
8 the regulations adopted by the Council of the European Union.
9 (d) Performance of any of the obligations described in
10 subsections (a), (b), and (c) of this Section may be made in
11 the currency or currencies originally designated in the
12 contract, security, or instrument, in the component
13 currencies of the ECU (in proportion to their respective
14 weights in the ECU), or in euro, but not in any other
15 currency, whether or not the other currency (i) has been
16 substituted or replaced by the euro or (ii) is a currency
17 that is considered a denomination of the euro and has a fixed
18 conversion rate with respect to the euro.
19 (e) Any contract, security, or instrument which permits
20 or imposes netting, set-off, or techniques with similar
21 effects shall apply to monetary obligations, irrespective of
22 their currency denomination, if that denomination is in euro
23 or in a national currency unit that has been substituted or
24 replaced by the euro, with any conversion being effected at
25 the rate specified in, and otherwise calculated in accordance
26 with, the regulations adopted by the Council of the European
27 Union.
28 Section 15. Interest rate. If a subject or medium of
29 payment of a contract, security, or instrument is calculated
30 or determined by or with reference to an interest rate or
31 other basis that has been substituted or replaced by a
32 different interest rate or other basis due to the
33 introduction of the euro, whether the substitution or
-3- LRB9004773SMcw
1 replacement is made by the service on which the rate or other
2 basis was published or by operation of contract, the
3 substituted or replaced interest rate or other basis shall be
4 a commercially reasonable substitute and substantial
5 equivalent that may be used in calculating or determining any
6 such subject or medium of payment.
7 Section 20. Substituted currency does not change
8 contract requirements. None of the following shall have the
9 effect of discharging or excusing performance under any
10 contract, security, or instrument, or give a party the right
11 unilaterally to alter or terminate any contract, security, or
12 instrument:
13 (1) The introduction of the euro.
14 (2) Tendering euros in connection with any
15 obligation in compliance with subsections (a), (b), or
16 (c) of Section 10.
17 (3) Calculating or determining the subject or
18 medium of payment of a contract, security, or instrument
19 with reference to a substituted or replaced interest rate
20 or other basis that is deemed a commercially reasonable
21 substitute and substantial equivalent according to the
22 terms of Section 10 of this Act.
23 Section 25 This Act is subject to anything that the
24 parties to a contract agree with specific reference to the
25 introduction of the euro.
26 Section 30. Reference to "ECU" in contracts. A reference
27 to "ECU" in a contract, security, or instrument without
28 defining "ECU" shall carry a presumption, rebuttable by a
29 showing of the contrary intention of the parties, that it is
30 a reference to the currency basket that is from time to time
31 used as the unit of account of the European Union.
-4- LRB9004773SMcw
1 Section 99. Effective date. This Act takes effect upon
2 becoming law.