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90_HB1418eng
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
HB1418 Engrossed 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 currency of participating member states
8 of the European Union that adopt a single currency in
9 accordance with the Treaty on European Union of February 7,
10 1992.
11 "Introduction of the euro" includes the implementation
12 from time to time of Economic and Monetary Union in member
13 states of the European Union pursuant to the Treaty on
14 European Union of February 7, 1992.
15 "ECU" or "European Currency Unit" means the currency
16 basket that is from time to time used as the unit of account
17 of the European Community as defined in European Council
18 Regulation No. 3320/94.
19 Section 10. Continuity of contract.
20 (a) If a subject or medium of payment of a contract,
21 security, or instrument is a currency that has been
22 substituted or replaced by the euro, the euro shall be a
23 commercially reasonable substitute and substantial equivalent
24 that may be either (i) used in determining the value of that
25 currency or (ii) tendered, in each case at the conversion
26 rate specified in, and otherwise calculated in accordance
27 with, the regulations adopted by the Council of the European
28 Union.
29 (b) If a subject or medium of payment of a contract,
30 security, or instrument is the ECU, the euro shall be a
HB1418 Engrossed -2- LRB9004773SMcw
1 commercially reasonable substitute and substantial equivalent
2 that may be either (i) used in determining the value of the
3 ECU or (ii) tendered, in each case at the conversion rate
4 specified in, and otherwise calculated in accordance with,
5 the regulations adopted by the Council of the European Union.
6 (c) Performance of any of the obligations described in
7 subsections (a) or (b) of this Section may be made in the
8 currency or currencies originally designated in the contract,
9 security, or instrument, (so long as that currency or those
10 currencies remain legal tender), or in the euro, but not in
11 any other currency, whether or not the other currency (i) has
12 been substituted or replaced by the euro or (ii) is a
13 currency that is considered a denomination of the euro and
14 has a fixed conversion rate with respect to the euro.
15 Section 15. Substituted currency does not change
16 contract requirements. None of the following shall have the
17 effect of discharging or excusing performance under any
18 contract, security, or instrument, or give a party the right
19 unilaterally to alter or terminate any contract, security, or
20 instrument:
21 (1) The introduction of the euro.
22 (2) Tendering euros in connection with any
23 obligation in compliance with subsections (a) or (b) of
24 Section 10.
25 (3) Determining the value of any obligation in
26 compliance with subsections (a) or (b) of Section 10.
27 (4) Calculating or determining the subject or
28 medium of payment of a contract, security, or instrument
29 with reference to a substituted or replaced interest rate
30 or other basis that is deemed a commercially reasonable
31 substitute and substantial equivalent according to the
32 terms of Section 10 of this Act.
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1 Section 20. This Act is subject to anything that the
2 parties to a contract agree with specific reference to the
3 introduction of the euro.
4 Section 25. Reference to "ECU" in contracts. When the
5 euro first becomes the monetary unit of participating member
6 states of the European Union, a reference to the ECU in a
7 contract, security, or instrument that also refers to the
8 definition of the ECU in Section 5 shall be replaced with a
9 reference to the euro at a rate of one euro to one ECU. A
10 reference to "ECU" in a contract, security, or instrument
11 without defining "ECU" shall carry a presumption, rebuttable
12 by a showing of the contrary intention of the parties, that
13 it is a reference to the currency basket that is from time to
14 time used as the unit of account of the European Community.
15 Section 30. Statutory construction. This Act shall
16 apply to all contracts, including commercial contracts
17 governed by any other law of this State, and shall not be
18 deemed to be displaced by the provisions of any other law of
19 this State.
20 Section 99. Effective date. This Act takes effect upon
21 becoming law.