Minnesota Session Laws - 1999, Regular Session

                             CHAPTER 40-S.F.No. 727 
                  An act relating to commerce; providing for continuity 
                  of contracts affected by the European currency; 
                  proposing coding for new law in Minnesota Statutes, 
                  chapter 334. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  [334.115] [CONTINUITY OF CONTRACT.] 
           Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
        subdivision apply to this section. 
           (b) "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 signed February 7, 
        1992. 
           (c) "Introduction of the euro" means the implementation of 
        economic and monetary union in member states of the European 
        Union in accordance with the treaty on European Union signed 
        February 7, 1992. 
           (d) "ECU" or "European Currency Unit" means the currency 
        basket that is used as the unit of account of the European 
        Community as defined in European Council Regulation No. 
        3320/94.  When the euro first becomes the monetary unit of 
        participating member states of the European Union, references to 
        the ECU in a contract, security, or instrument that also refers 
        to this definition of the ECU will be replaced by references to 
        the euro at a rate of one euro to one ECU.  References to the 
        ECU in a contract, security, or instrument without this 
        definition of the ECU are presumed, unless either demonstrated 
        or proven to the contrary by the intention of the parties, to be 
        references to the currency basket that is used as the unit of 
        account of the European Community. 
           Subd. 2.  [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 will be a commercially reasonable substitute and 
        substantial equivalent that may be either: 
           (1) used in determining the value of the currency; or 
           (2) 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 will be a 
        commercially reasonable substitute and substantial equivalent 
        that may be either: 
           (1) used in determining the value of the ECU; or 
           (2) 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 
        paragraph (a) or (b) may be made in the currency originally 
        designated in the contract, security, or instrument, so long as 
        that currency remains legal tender, or in euro, but not in any 
        other currency, whether or not the other currency: 
           (1) has been substituted or replaced by the euro; or 
           (2) is a currency that is considered a denomination of the 
        euro and has a fixed conversion rate with respect to the euro. 
           (d) The following do not have the effect of discharging or 
        excusing performance under any contract, security or instrument, 
        or give a party the right to unilaterally alter or terminate any 
        contract, security, or instrument: 
           (1) the introduction of the euro; 
           (2) the tendering of euros in connection with any 
        obligation in compliance with paragraph (a) or (b); 
           (3) the determining of the value of any obligation in 
        compliance with paragraph (a) or (b); or 
           (4) the calculating or determining of the subject or medium 
        of payment of a contract, security, or instrument with reference 
        to the interest rate or other basis that has been substituted or 
        replaced due to the introduction of the euro and that is a 
        commercially reasonable substitute and substantial equivalent. 
           Subd. 3.  [EFFECT ON AGREEMENTS.] This section does not 
        alter or impair and is subject to any agreement between parties 
        regarding the introduction of the euro. 
           Subd. 4.  [APPLICATION.] (a) This section applies to all 
        contracts, securities, and instruments, including contracts with 
        respect to commercial transactions, and is not displaced by any 
        other law of this state. 
           (b) In circumstances of currency alteration other than the 
        introduction of the euro, this section does not create a 
        negative inference or negative presumption regarding the 
        validity or enforceability of contracts, securities, or 
        instruments denominated in whole or in part in a currency 
        affected by that alteration. 
           Subd. 5.  [SUNSET.] This section expires on December 31, 
        2002. 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective the day following final enactment. 
           Presented to the governor April 8, 1999 
           Signed by the governor April 12, 1999, 2:14 p.m.