State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Engrossed ][ House Amendment 001 ]

90_HB1418enr

      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 Enrolled                                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 Enrolled             -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.
HB1418 Enrolled             -3-                LRB9004773SMcw
 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.

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