2001 Legislation
Print Friendly

SENATE BILL NO. 1022 – Uniform Foreign Money Claims Act

SENATE BILL NO. 1022

View Daily Data Tracking History

View Bill Text

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Daily Data Tracking History



S1022................................................by JUDICIARY AND RULES
FOREIGN-MONEY CLAIMS ACT - Adds to existing law to provide for
foreign-money claims; to define terms; to provide scope and for variation
of the act by agreement; to provide for determining the money of the claim;
to provide for determining the amount of the money of certain contract
claims; to provide for the assertion and defense of a foreign-money claim;
to provide for judgments and awards on foreign-money claims; to provide for
times of money conversion; to provide for conversions of foreign money in
distribution proceedings; to provide for prejudgment interest and judgment
interest; to provide for enforcement of foreign judgments; to provide for
determining the United States dollar value of foreign-money claims for
limited purposes; to provide for the effect of current revalorization; to
provide for supplementary general principles of law and for uniformity of
application and construction; to provide a short title; and to provide for
application.
                                                                        
01/18    Senate intro - 1st rdg - to printing
01/19    Rpt prt - to Com/HuRes
02/07    Rpt out - rec d/p - to 2nd rdg
02/08    2nd rdg - to 3rd rdg
02/09    3rd rdg - PASSED - 33-0-1(1 vacant)
      AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
      Burtenshaw, Cameron, Danielson, Darrington, Davis, Deide, Dunklin,
      Frasure, Geddes, Goedde, Hawkins, Ingram, Ipsen, King-Barrutia, Lee,
      Lodge, Noh, Richardson, Risch, Sandy, Schroeder, Sorensen, Stegner,
      Stennett, Thorne, Wheeler, Whitworth, Williams,
      NAYS -- None
      Absent and excused -- Keough
      Vacant -- Dist. #4
    Floor Sponsor -- Davis
    Title apvd - to House
02/12    House intro - 1st rdg - to Jud
03/22    Rpt out - rec d/p - to 2nd rdg
03/23    2nd rdg - to 3rd rdg
03/28    3rd rdg - PASSED - 59-1-10
      AYES -- Barraclough, Barrett, Bedke, Bieter, Black, Boe, Bolz,
      Bradford, Bruneel, Callister, Campbell, Chase, Clark, Collins, Deal,
      Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20), Hadley,
      Harwood, Henbest(Farley), Higgins, Hornbeck, Jaquet, Jones, Kendell,
      Kunz, Lake, Langford, Loertscher, Mader, McKague, Meyer, Montgomery,
      Mortensen, Moss, Moyle, Pearce, Pomeroy, Raybould, Roberts, Robison,
      Sali, Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stone,
      Tilman, Trail, Wheeler, Wood, Young(Young), Mr. Speaker
      NAYS -- Hammond
      Absent and excused -- Bell, Crow, Cuddy, Gagner, Gould, Hansen,
      Kellogg, Marley, Pischner, Ridinger
    Floor Sponsor -- Sali
    Title apvd - to Senate
03/29    To enrol
    Rpt enrol - Pres signed
03/30    Sp signed - to Governor
04/04    Governor signed
         Session Law Chapter 329
         Effective: 07/01/01

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1022
                                                                        
                              BY JUDICIARY AND RULES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE UNIFORM FOREIGN-MONEY CLAIMS ACT;  AMENDING  TITLE  10,  IDAHO
  3        CODE, BY THE ADDITION OF A NEW CHAPTER 15, TITLE 10, IDAHO CODE, TO DEFINE
  4        TERMS, TO PROVIDE SCOPE, TO PROVIDE FOR VARIATION BY AGREEMENT, TO PROVIDE
  5        FOR  DETERMINING  THE  MONEY  OF THE CLAIM, TO PROVIDE FOR DETERMINING THE
  6        AMOUNT OF THE MONEY OF CERTAIN CONTRACT CLAIMS, TO PROVIDE FOR THE  ASSER-
  7        TION  AND  DEFENSE  OF A FOREIGN-MONEY CLAIM, TO PROVIDE FOR JUDGMENTS AND
  8        AWARDS ON FOREIGN-MONEY CLAIMS, TO PROVIDE FOR TIMES OF  MONEY  CONVERSION
  9        AND TO PROVIDE FOR FORM OF JUDGMENT, TO PROVIDE FOR CONVERSIONS OF FOREIGN
 10        MONEY IN DISTRIBUTION PROCEEDINGS, TO PROVIDE FOR PREJUDGMENT INTEREST AND
 11        JUDGMENT  INTEREST,  TO  PROVIDE  FOR ENFORCEMENT OF FOREIGN JUDGMENTS, TO
 12        PROVIDE FOR DETERMINING THE UNITED STATES DOLLAR  VALUE  OF  FOREIGN-MONEY
 13        CLAIMS  FOR  LIMITED  PURPOSES,  TO  PROVIDE  FOR  THE  EFFECT  OF CURRENT
 14        REVALORIZATION, TO PROVIDE FOR SUPPLEMENTARY GENERAL PRINCIPLES OF LAW, TO
 15        PROVIDE FOR UNIFORMITY OF APPLICATION AND CONSTRUCTION, TO PROVIDE A SHORT
 16        TITLE, TO PROVIDE FOR SEVERABILITY AND TO PROVIDE THAT THE CHAPTER APPLIES
 17        TO ACTIONS AND DISTRIBUTION  PROCEEDINGS  COMMENCED  AFTER  THE  EFFECTIVE
 18        DATE; AND PROVIDING AN EFFECTIVE DATE.
                                                                        
 19    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 20        SECTION  1.  That Title 10, Idaho Code, be, and the same is hereby amended
 21    by the addition thereto of a NEW CHAPTER, to be known and designated as  Chap-
 22    ter 15, Title 10, Idaho Code, and to read as follows:
                                                                        
 23                                      CHAPTER 15
 24                           UNIFORM FOREIGN-MONEY CLAIMS ACT
                                                                        
 25        10-1501.  DEFINITIONS. As used in this chapter:
 26        (1)  "Action"  means  a judicial proceeding or arbitration in which a pay-
 27    ment in money may be awarded or  enforced  with  respect  to  a  foreign-money
 28    claim.
 29        (2)  "Bank-offered  spot  rate" means the spot rate of exchange at which a
 30    bank will sell foreign money at a spot rate.
 31        (3)  "Conversion date" means the banking day next preceding  the  date  on
 32    which money, in accordance with this chapter, is:
 33        (i)   Paid to a claimant in an action or distribution proceeding;
 34        (ii)  Paid  to  the  official  designated  by law to enforce a judgment or
 35        award on behalf of a claimant; or
 36        (iii) Used to recoup, set-off or counterclaim in different  moneys  in  an
 37        action or distribution proceeding.
 38        (4)  "Distribution  proceeding" means a judicial or nonjudicial proceeding
 39    for the distribution of a fund in which one (1) or more  foreign-money  claims
 40    is asserted and includes an accounting, an assignment for the benefit of cred-
 41    itors,  a  foreclosure,  the liquidation or rehabilitation of a corporation or
 42    other entity, and the distribution of an estate, trust or other fund.
                                                                        
                                           2
                                                                        
  1        (5)  "Foreign money" means money other than money of the United States  of
  2    America.
  3        (6)  "Foreign-money  claim"  means a claim upon an obligation to pay, or a
  4    claim for recovery of a loss, expressed in or measured by a foreign money.
  5        (7)  "Money" means a medium of exchange for the payment of obligations  or
  6    a  store  of  value  authorized  or  adopted  by  a  government  or  by inter-
  7    governmental agreement.
  8        (8)  "Money of the claim" means the money determined as proper pursuant to
  9    section 10-1504, Idaho Code.
 10        (9)  "Person" means an individual, a corporation, government or governmen-
 11    tal subdivision or agency, business trust, estate, trust, joint venture, part-
 12    nership, association, two (2) or more persons having a joint or common  inter-
 13    est, or any other legal or commercial entity.
 14        (10) "Rate  of  exchange" means the rate at which money of one (1) country
 15    may be converted into money of another country in a free financial market con-
 16    venient to or reasonably usable by a person obligated to pay  or  to  state  a
 17    rate  of conversion. If separate rates of exchange apply to different kinds of
 18    transactions, the term means the rate applicable to the particular transaction
 19    giving rise to the foreign-money claim.
 20        (11) "Spot rate" means the rate of exchange at which foreign money is sold
 21    by a bank or other dealer in foreign exchange for immediate or next day avail-
 22    ability or for settlement by immediate  payment  in  cash  or  equivalent,  by
 23    charge to an account, or by an agreed delayed settlement not exceeding two (2)
 24    days.
 25        (12) "State" means a state of the United States, the District of Columbia,
 26    the  Commonwealth of Puerto Rico, or a territory or insular possession subject
 27    to the jurisdiction of the United States.
                                                                        
 28        10-1502.  SCOPE. (a) This chapter applies only to a foreign-money claim in
 29    an action or distribution proceeding.
 30        (b)  This chapter applies to foreign-money issues even if other law  under
 31    the conflict of laws rules of this state applies to other issues in the action
 32    or distribution proceeding.
                                                                        
 33        10-1503.  VARIATION  BY  AGREEMENT.  (a) The effect of this chapter may be
 34    varied by agreement of the parties made before or  after  commencement  of  an
 35    action or distribution proceeding or the entry of judgment.
 36        (b)  Parties  to  a  transaction  may agree upon the money to be used in a
 37    transaction giving rise to a foreign-money claim and may agree to use  differ-
 38    ent  moneys  for  different aspects of the transaction. Stating the price in a
 39    foreign money for one (1) aspect of a transaction does not alone  require  the
 40    use of that money for other aspects of the transaction.
                                                                        
 41        10-1504.  DETERMINING  MONEY OF THE CLAIM. (a) The money in which the par-
 42    ties to a transaction have agreed that payment is to be  made  is  the  proper
 43    money of the claim for payment.
 44        (b)  If the parties to a transaction have not otherwise agreed, the proper
 45    money of the claim, as in each case may be appropriate, is the money:
 46        (1)  Regularly  used between the parties as a matter of usage or course of
 47        dealing;
 48        (2)  Used at the time of a transaction in international  trade,  by  trade
 49        usage or common practice, for valuing or settling transactions in the par-
 50        ticular commodity or service involved; or
 51        (3)  In  which  the  loss  was  ultimately felt or will be incurred by the
 52        party claimant.
                                                                        
                                           3
                                                                        
  1        10-1505.  DETERMINING AMOUNT OF THE MONEY OF CERTAIN CONTRACT CLAIMS.  (a)
  2    If  an amount contracted to be paid in a foreign money is measured by a speci-
  3    fied amount of a different money, the amount to be paid is determined  on  the
  4    conversion date.
  5        (b)  If  an  amount contracted to be paid in a foreign money is to be mea-
  6    sured by a different money at the rate of exchange prevailing on a date before
  7    default, that rate of exchange applies only to payments made within a  reason-
  8    able  time  after default, not exceeding thirty (30) days. Thereafter, conver-
  9    sion is made at the bank-offered spot rate on the conversion date.
 10        (c)  A monetary claim is neither usurious nor unconscionable  because  the
 11    agreement  on which it is based provides that the amount of the debtor's obli-
 12    gation to be paid in the debtor's money, when received by the  creditor,  must
 13    equal  a specified amount of the foreign money of the country of the creditor.
 14    If, because of unexcused delay in payment of a judgment or award,  the  amount
 15    received by the creditor does not equal the amount of the foreign money speci-
 16    fied  in  the  agreement,  the court or arbitrator shall amend the judgment or
 17    award accordingly.
                                                                        
 18        10-1506.  ASSERTING AND DEFENDING FOREIGN-MONEY CLAIM. (a)  A  person  may
 19    assert  a  claim in a specified foreign money. If a foreign-money claim is not
 20    asserted, the claimant makes the claim in United States dollars.
 21        (b)  An opposing party may allege and prove that a claim, in whole  or  in
 22    part, is in a different money than that asserted by the claimant.
 23        (c)  A person may assert a defense, set-off, recoupment or counterclaim in
 24    any money without regard to the money of other claims.
 25        (d)  The  determination  of the proper money of the claim is a question of
 26    law.
                                                                        
 27        10-1507.   JUDGMENTS AND AWARDS ON FOREIGN-MONEY CLAIMS -- TIMES OF  MONEY
 28    CONVERSION  --  FORM  OF JUDGMENT. (a) Except as provided in subsection (c) of
 29    this section, a judgment or award on a foreign-money claim must be  stated  in
 30    an amount of the money of the claim.
 31        (b)  A  judgment or award on a foreign-money claim is payable in that for-
 32    eign money or, at the option of the debtor, in the  amount  of  United  States
 33    dollars  which  will  purchase  that foreign money on the conversion date at a
 34    bank-offered spot rate.
 35        (c)  Assessed costs must be entered in United States dollars.
 36        (d)  Each payment in United States dollars must be accepted  and  credited
 37    on  a  judgment or award on a foreign-money claim in the amount of the foreign
 38    money that could be purchased by the dollars at a bank-offered  spot  rate  of
 39    exchange at or near the close of business on the conversion date for that pay-
 40    ment.
 41        (e)  A  judgment  or award made in an action or distribution proceeding on
 42    both (i) a defense, set-off, recoupment or counterclaim and (ii)  the  adverse
 43    party's  claim, must be netted by converting the money of the smaller into the
 44    money of the larger, and by subtracting the smaller from the larger, and spec-
 45    ify the rates of exchange used.
 46        (f)  A judgment substantially in the following form complies with  subsec-
 47    tion (a) of this section:
 48        IT  IS  ADJUDGED AND ORDERED, that Defendant ....... (insert name) .......
 49        pay to Plaintiff ....... (insert name)....... the sum of  .......  (insert
 50        amount in the foreign money) ....... plus interest on that sum at the rate
 51        of ....... (insert rate - see section 10-1509, Idaho Code) ....... percent
 52        a  year  or,  at  the  option of the judgment debtor, the number of United
 53        States dollars which will purchase the .......  (insert  name  of  foreign
                                                                        
                                           4
                                                                        
  1        money)  .......  with interest due, at a bank-offered spot rate at or near
  2        the close of business on the banking day next before the day  of  payment,
  3        together  with  assessed  costs  of ....... (insert amount) ....... United
  4        States dollars.
  5        (g)  If a contract claim is of the type covered by  section 10-1505(a)  or
  6    (b), Idaho Code, the judgment or award must be entered for the amount of money
  7    stated to measure the obligation to be paid in the money specified for payment
  8    or,  at  the  option  of the debtor, the number of United States dollars which
  9    will purchase the computed amount of the money of payment  on  the  conversion
 10    date at a bank-offered spot rate.
 11        (h)  A  judgment  must be filed with the district court, and recorded with
 12    the county recorder, in foreign money in the same manner,  and  has  the  same
 13    effect as a lien, as other judgments. It may be discharged by payment.
                                                                        
 14        10-1508.  CONVERSIONS  OF  FOREIGN  MONEY  IN DISTRIBUTION PROCEEDING. The
 15    rate of exchange prevailing at or near the close of business on  the  day  the
 16    distribution proceeding is initiated governs all exchanges of foreign money in
 17    a distribution proceeding. A foreign-money claimant in a distribution proceed-
 18    ing  shall  assert its claim in the named foreign money and show the amount of
 19    United States dollars resulting from a conversion as of the date the  proceed-
 20    ing was initiated.
                                                                        
 21        10-1509.  PREJUDGMENT  AND  JUDGMENT  INTEREST.  (a)  With  respect  to  a
 22    foreign-money claim, recovery of prejudgment or preaward interest and the rate
 23    of  interest to be applied in the action or distribution proceeding, except as
 24    provided in subsection (b) of this section, are matters of the substantive law
 25    governing the right to recovery  under  the  conflict-of-laws  rules  of  this
 26    state.
 27        (b)  The  court  or  arbitrator  shall  increase or decrease the amount of
 28    prejudgment or preaward interest otherwise payable in a judgment or  award  in
 29    foreign  money  to  the  extent  required by the law of this state governing a
 30    failure to make or accept an offer of settlement or offer of judgment, or con-
 31    duct by a party or its attorney causing undue delay or expense.
 32        (c)  A judgment or award on a foreign-money claim bears  interest  at  the
 33    rate applicable to judgments of this state.
                                                                        
 34        10-1510.  ENFORCEMENT OF FOREIGN JUDGMENTS. (a) If an action is brought to
 35    enforce  a  judgment  of another jurisdiction expressed in a foreign money and
 36    the judgment is recognized in this state as enforceable, the  enforcing  judg-
 37    ment  must  be  entered as provided in section 10-1507, Idaho Code, whether or
 38    not the foreign judgment confers an option to pay in an equivalent  amount  of
 39    United States dollars.
 40        (b)  A  foreign judgment may be filed in accordance with any rule or stat-
 41    ute of this state providing a procedure for its recognition and enforcement.
 42        (c)  A satisfaction or partial payment made upon the foreign judgment,  on
 43    proof  thereof, must be credited against the amount of foreign money specified
 44    in the judgment, notwithstanding the entry of judgment in this state.
 45        (d)  A judgment entered on a foreign-money claim  only  in  United  States
 46    dollars  in another state must be enforced in this state in United States dol-
 47    lars only.
                                                                        
 48        10-1511.  DETERMINING UNITED STATES DOLLAR VALUE OF  FOREIGN-MONEY  CLAIMS
 49    FOR  LIMITED PURPOSES. (a) Computations under this section are for the limited
 50    purposes of the section and do not affect computation  of  the  United  States
 51    dollar equivalent of the money of the judgment for the purpose of payment.
                                                                        
                                           5
                                                                        
  1        (b)  For  the  limited  purpose  of facilitating the enforcement of provi-
  2    sional remedies in an action, the value in United States dollars of assets  to
  3    be  seized or restrained pursuant to a writ of attachment, garnishment, execu-
  4    tion or other legal process, the amount of United States dollars at issue  for
  5    assessing  costs, or the amount of United States dollars involved for a surety
  6    bond or other court required undertaking, must be ascertained as  provided  in
  7    subsections (c) and (d) of this section.
  8        (c)  A  party seeking process, costs, bond or other undertaking under sub-
  9    section (b) of this section shall compute in United States dollars the  amount
 10    of  the  foreign  money claimed from a bank-offered spot rate prevailing at or
 11    near the close of business on the banking day next preceding the filing  of  a
 12    request or application for the issuance of process or for the determination of
 13    costs, or an application for a bond or other court required undertaking.
 14        (d)  A  party  seeking the process, costs, bond or other undertaking under
 15    subsection (b) of this section shall file with each request or application  an
 16    affidavit or certificate executed in good faith by its counsel or a bank offi-
 17    cer,  stating  the  market quotation used and how it was obtained, and setting
 18    forth the calculation. Affected court officials incur no  liability,  after  a
 19    filing  of the affidavit or certificate, for acting as if the judgment were in
 20    the amount of United States dollars stated in the affidavit or certificate.
                                                                        
 21        10-1512.  EFFECT OF CURRENT REVALORIZATION. (a) If, after an obligation is
 22    expressed or a loss is incurred in a foreign money,  the  country  issuing  or
 23    adopting  that money substitutes a new money in place of that money, the obli-
 24    gation or the loss is treated as if expressed or incurred in the new money  at
 25    the rate of conversion the issuing country establishes for the payment of like
 26    obligations or losses denominated in the former money.
 27        (b)  If  substitution  under subsection (a) of this section occurs after a
 28    judgment or award is entered on a foreign-money claim, the court or arbitrator
 29    shall amend the judgment or award by a like conversion of the former money.
                                                                        
 30        10-1513.  SUPPLEMENTARY GENERAL PRINCIPLES OF  LAW.  Unless  displaced  by
 31    particular  provisions  of  this  chapter,  the  principles of law and equity,
 32    including the law merchant, and the law  relative  to  capacity  to  contract,
 33    principal  and  agent,  estoppel,  fraud, misrepresentation, duress, coercion,
 34    mistake, bankruptcy, or other validating or invalidating causes supplement its
 35    provisions.
                                                                        
 36        10-1514.  UNIFORMITY OF APPLICATION AND CONSTRUCTION. This  chapter  shall
 37    be applied and construed to effectuate its general purpose to make uniform the
 38    law with respect to the subject of this chapter among states enacting it.
                                                                        
 39        10-1515.  SHORT  TITLE. This chapter may be cited as the "Uniform Foreign-
 40    Money Claims Act."
                                                                        
 41        10-1516.  SEVERABILITY. The provisions of this chapter are hereby declared
 42    to be severable and if any provision of this chapter  or  the  application  of
 43    such  provision to any person or circumstance is declared invalid for any rea-
 44    son, such declaration shall not affect the validity of the remaining  portions
 45    of this chapter.
                                                                        
 46        10-1517.  TRANSITIONAL PROVISION. This chapter applies to actions and dis-
 47    tribution proceedings commenced after its effective date.
                                                                        
 48        SECTION  2.  This  act shall be in full force and effect on and after July
                                                                        
                                           6
                                                                        
  1    1, 2001.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                           RS 10615C1
                                 This legislation enacts the Uniform Foreign-Money Claims Act
("UFMCA").  Except for minor revisions to accommodate existing
Idaho law, UFMCA was drafted and approved by the National
Conference of Commissioners on Uniform State Laws and is
recommended by the Idaho Uniform Law Commission for adoption in
Idaho.  The Act has been approved by the American Bar Association.

     UFMCA is intended to facilitate determination and payment of
pecuniary claims for loss or damage properly measured in money
other than that of the United States when involved in litigation or
quasi-litigated situations.  It does not apply to voluntary
payments of such obligations.  Pursuant to UFMCA, courts are
authorized to appraise loss or damage in terms of the money agreed
to by the parties or in which the loss was felt.
                         
                         FISCAL IMPACT
This Act will have no fiscal impact on the General Fund.
Contact
Name: Rex Blackburn
Evans, Keane LLP 
Phone: (208) 384-1800



STATEMENT OF PURPOSE/FISCAL NOTE                          S1022