Print Friendly SENATE BILL NO. 1022 – Uniform Foreign Money Claims Act
SENATE BILL NO. 1022
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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
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
|||| 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
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.
1 (5) "Foreign money" means money other than money of the United States of
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)
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
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.
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
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-
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
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
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.
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
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
1 1, 2001.
STATEMENT OF PURPOSE
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.
This Act will have no fiscal impact on the General Fund.
Name: Rex Blackburn
Evans, Keane LLP
Phone: (208) 384-1800
STATEMENT OF PURPOSE/FISCAL NOTE S1022