BUSINESS & COMMERCE CODE

CHAPTER 42. EUROPEAN UNION CURRENCY CONVERSION


	§ 42.001.  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 
that is 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)  "Treaty on European Union" means the Treaty on 
European Union of February 7, 1992.
		(4)  "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.

Added by Acts 1999, 76th Leg., ch. 971, § 1, eff. June 18, 1999.           


	§ 42.002.  APPLICABILITY OF CHAPTER.  (a)  This chapter 
applies to each contract, security, and instrument, including a 
commercial contract, governed by the laws of this state.
	(b)  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 1999, 76th Leg., ch. 971, § 1, eff. June 18, 1999.           


	§ 42.003.  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 1999, 76th Leg., ch. 971, § 1, eff. June 18, 1999.           


	§ 42.004.  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 those obligations 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 1999, 76th Leg., ch. 971, § 1, eff. June 18, 1999.           


	§ 42.005.  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 1999, 76th Leg., ch. 971, § 1, eff. June 18, 1999.