Public Act 90-0268 of the 90th General Assembly
Public Act 90-0268
HB1418 Enrolled LRB9004773SMcw
AN ACT concerning currency changes in Europe.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Euro Conversion Act.
Section 5. Definitions. As used in this Act:
"Euro" means the currency of participating member states
of the European Union that adopt a single currency in
accordance with the Treaty on European Union of February 7,
1992.
"Introduction of the euro" includes the implementation
from time to time of Economic and Monetary Union in member
states of the European Union pursuant to the Treaty on
European Union of February 7, 1992.
"ECU" or "European Currency Unit" means the currency
basket that is from time to time used as the unit of account
of the European Community as defined in European Council
Regulation No. 3320/94.
Section 10. Continuity of contract.
(a) If a subject or medium of payment of a contract,
security, or instrument is a currency that has been
substituted or replaced by the euro, the euro shall be a
commercially reasonable substitute and substantial equivalent
that may be either (i) used in determining the value of that
currency or (ii) tendered, in each case at the conversion
rate specified in, and otherwise calculated in accordance
with, the regulations adopted by the Council of the European
Union.
(b) If a subject or medium of payment of a contract,
security, or instrument is the ECU, the euro shall be a
commercially reasonable substitute and substantial equivalent
that may be either (i) used in determining the value of the
ECU or (ii) tendered, in each case at the conversion rate
specified in, and otherwise calculated in accordance with,
the regulations adopted by the Council of the European Union.
(c) Performance of any of the obligations described in
subsections (a) or (b) of this Section may be made in the
currency or currencies originally designated in the contract,
security, or instrument, (so long as that currency or those
currencies remain legal tender), or in the euro, but not in
any other currency, whether or not the other currency (i) has
been substituted or replaced by the euro or (ii) is a
currency that is considered a denomination of the euro and
has a fixed conversion rate with respect to the euro.
Section 15. Substituted currency does not change
contract requirements. None of the following shall have the
effect of discharging or excusing performance under any
contract, security, or instrument, or give a party the right
unilaterally to alter or terminate any contract, security, or
instrument:
(1) The introduction of the euro.
(2) Tendering euros in connection with any
obligation in compliance with subsections (a) or (b) of
Section 10.
(3) Determining the value of any obligation in
compliance with subsections (a) or (b) of Section 10.
(4) Calculating or determining the subject or
medium of payment of a contract, security, or instrument
with reference to a substituted or replaced interest rate
or other basis that is deemed a commercially reasonable
substitute and substantial equivalent according to the
terms of Section 10 of this Act.
Section 20. This Act is subject to anything that the
parties to a contract agree with specific reference to the
introduction of the euro.
Section 25. Reference to "ECU" in contracts. When the
euro first becomes the monetary unit of participating member
states of the European Union, a reference to the ECU in a
contract, security, or instrument that also refers to the
definition of the ECU in Section 5 shall be replaced with a
reference to the euro at a rate of one euro to one ECU. A
reference to "ECU" in a contract, security, or instrument
without defining "ECU" shall carry a presumption, rebuttable
by a showing of the contrary intention of the parties, that
it is a reference to the currency basket that is from time to
time used as the unit of account of the European Community.
Section 30. Statutory construction. This Act shall
apply to all contracts, including commercial contracts
governed by any other law of this State, and shall not be
deemed to be displaced by the provisions of any other law of
this State.
Section 99. Effective date. This Act takes effect upon
becoming law.