§ 9701. Continuity of contract under European monetary union
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 12 Pa.C.S.A. Commerce and Trade
12 Pa.C.S.A. § 9701
§ 9701. Continuity of contract under European monetary union
(3) Performance of any of the obligations described in paragraph (1) or (2) may be made in the currency or currencies originally designated in the contract, security or instrument, so long as the currency or currencies remain legal tender or in euro, but not in any other currency, whether or not the other currency:
(4) Calculation or determination of the subject or medium of payment of a contract, security or instrument with reference to an 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.
(c) References to ECU in contracts.--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 in substance to the definition of the ECU as set forth in subsection (g) shall 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 such a definition of the ECU shall be presumed, rebuttable by proof of the contrary intention of the parties, to be references to the currency basket that is from time to time used as the unit of account of the European Community.
(e) Application.--Notwithstanding the provisions of Title 13 (relating to commercial code) or any other law of this Commonwealth, this section shall apply to all contracts, securities and instruments, including contracts with respect to commercial transactions, and shall not be deemed to be displaced by any other law of this Commonwealth.
(f) No application to other currency alteration.--In circumstances of currency alteration other than the introduction of the euro, this section shall not be interpreted as creating any negative inference or negative presumption regarding the validity or enforceability of contracts, securities or instruments denominated in whole or part in a currency affected by that alteration.
“ECU” or “European Currency Unit.” 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.
“Euro.” 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.
“Introduction of the euro.” Includes, but is not limited to, the implementation from time to time of economic and monetary union in member states of the European Union in accordance with the Treaty on European Union signed February 7, 1992.
Credits
1998, Dec. 3, P.L. 939, No. 122, § 1, imd. effective.
12 Pa.C.S.A. § 9701, PA ST 12 Pa.C.S.A. § 9701
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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