CHAPTER 661. EUROPEAN UNION CURRENCY CONVERSION - Texas Statutes

BUSINESS AND COMMERCE CODE

TITLE 15. CURRENCY AND TRADE

SUBTITLE A. CURRENCY

CHAPTER 661. EUROPEAN UNION CURRENCY CONVERSION

Sec. 661.001. DEFINITIONS. In this chapter:

(1) "Euro" means the currency of the member states of the

European Community, as amended by the Treaty on European Union.

The term is abbreviated as EUR.

(2) "European currency unit" means the currency basket

periodically used as the unit of account of the European

Community, as defined by Regulation No. 3320/94 of the Council of

the European Union and as referred to in Article 109g of the

treaty establishing the European Community, as amended by the

Treaty on European Union. The term is abbreviated as ECU.

(3) "Introduction of the euro" means the periodic implementation

of economic and monetary union in member states of the European

Union in accordance with the Treaty on European Union.

(4) "Treaty on European Union" means the Treaty on European

Union of February 7, 1992.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 661.002. APPLICABILITY OF CHAPTER. This chapter applies to

each contract, security, and instrument, including a commercial

contract, governed by the laws of this state.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 661.003. CONFLICTS OF LAW. This chapter prevails to the

extent of any conflict between this chapter and any other law of

this state.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 661.004. NO NEGATIVE INFERENCE OR PRESUMPTION CREATED.

With respect to currency alteration other than the introduction

of the euro, this chapter does not create any negative inference

or negative presumption regarding the validity or enforceability

of a contract, security, or instrument denominated wholly or

partly in a currency affected by the alteration.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 661.005. CONTINUITY OF CONTRACT. (a) If a subject or

medium of payment of a contract, security, or instrument is the

European currency unit or a currency that has been substituted or

replaced by the euro, the euro is a commercially reasonable

substitute and substantial equivalent that may be:

(1) used in determining the value of the European currency unit

or currency, as appropriate; or

(2) tendered, in each case, at the conversion rate specified in,

and otherwise computed in accordance with, the regulations

adopted by the Council of the European Union.

(b) A person may perform any obligation described by Subsection

(a) in euros or in the currency or currencies originally

designated in the contract, security, or instrument if that

currency or those currencies remain legal tender, but the person

may not perform the obligation in any other currency, regardless

of whether that other currency:

(1) has been substituted or replaced by the euro; or

(2) is considered a denomination of the euro and has a fixed

conversion rate with respect to the euro.

(c) The following occurrences are not considered a discharge of,

do not excuse performance under, and do not give a party the

right to unilaterally alter or terminate a contract, security, or

instrument:

(1) the introduction of the euro;

(2) the tender of euros in connection with any obligation

described by Subsection (a);

(3) the determination of the value of any obligation described

by Subsection (a); or

(4) the computation or determination of the subject or medium of

payment of a contract, security, or instrument with reference to

an interest rate or any other basis that has been substituted or

replaced because of the introduction of the euro and that is a

commercially reasonable substitute and substantial equivalent.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 661.006. EFFECT ON CERTAIN AGREEMENTS. This chapter does

not alter or impair an agreement between parties that

specifically relates to the introduction of the euro.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.