The Uniform Foreign-Money Claims Act

Part 2, Title 8.5 of the Code of Civil Procedure contains the Uniform Foreign-Money Claims Act. Section 676 specifies that the title is known and may be cited as the Uniform Foreign-Money Claims Act.

Section 676.1 defines the following terms: “Action,” “bank-offered spot rate,” “conversion date,” “distribution proceeding,” “foreign money,” “foreign money claim,” “money,” “money of the claim,” “person,” “rate of exchange,” “spot rate,” and “state.”

Section 676.2 states that this title applies only to a foreign-money claim in an action or distribution proceeding, as well as to foreign-money issues even if other law under the conflict-of-laws rules of this state applies to other issues in the action or distribution proceeding.

Section 676.3 provides that the effect of this title may be varied by agreement of the parties made before or after commencement of an action or distribution proceeding or the entry of judgment. Parties to a transaction may agree upon the money to be used in a transaction giving rise to a foreign-money claim and may agree to use different moneys for different aspects of the transaction.

Section 676.4 provides that the money in which the parties to a transaction have agreed that payment is to be made is the proper money of the claim for payment. If the parties to a transaction have not otherwise agreed, the proper money of the claim, as in each case may be appropriate, is one of three specifies circumstances.

Section 676.5 states that, if an amount contracted to be paid in a foreign money is measured by a specified amount of a different money, the amount to be paid is determined on the conversion date. If an amount contracted to be paid in a foreign money is to be measured by a different money at the rate of exchange prevailing on a date before default, that rate of exchange applies only to payments made within a reasonable time after default, not exceeding 30 days.

Section 676.6 allows a person to assert a claim in a specified foreign money. If a foreign-money claim is not asserted, the claimant makes the claim in United States dollars. There are specified rules for three specified circumstances.

Section 676.7 specifies that a judgment or award on a foreign-money claim is stated in an amount of the money of the claim. A judgment or award on a foreign-money claim is payable in that foreign money or, at the option of the debtor, in the amount of United States dollars which will purchase that foreign money on the conversion date at a bank-offered spot rate.

In addition, a judgment substantially in the specified form complies with this subdivision. If a contract claim is of the type covered, the judgment or award is entered for the amount of money stated to measure the obligation to be paid in the money specified for payment or, at the option of the debtor, the number of United States dollars which will purchase the computed amount of the money of payment on the conversion date at a bank-offered spot rate.

Section 676.8 specifies that the rate of exchange prevailing at or near the close of business on the day the distribution proceeding is initiated governs all exchanges of foreign money in a distribution proceeding. A foreign-money claimant in a distribution proceeding is required to assert its claim in the named foreign money and show the amount of United States dollars resulting from a conversion as of the date the proceeding was initiated.

Section 676.9 states that, with respect to a foreign-money claim, recovery of prejudgment or pre-award interest and the rate of interest to be applied in the action or distribution proceeding are matters of the substantive law governing the right to recovery under the conflict-of-laws rules of this state. A judgment or award on a foreign-money claim bears interest at the rate applicable to judgments of this state.

Section 676.10 provides that, if an action is brought to enforce a judgment of another jurisdiction expressed in a foreign money and the judgment is recognized in this state as enforceable, the enforcing judgment is entered, whether or not the foreign judgment confers an option to pay in an equivalent amount of United States dollars.

In addition, a foreign judgment may be enforced. A satisfaction or partial payment made upon the foreign judgment is credited against the amount of foreign money specified in the judgment, notwithstanding the entry of judgment in this state. A judgment entered on a foreign-money claim only in United States dollars in another state is enforced in this state in United States dollars only.

Section 676.11 specifies that the computations under this section are for the limited purposes of the section and do not affect computation of the United States dollar equivalent of the money of the judgment for the purpose of payment.

A party seeking process, costs, bond, or other undertaking must compute in United States dollars the amount of the foreign money claimed from a bank-offered spot rate prevailing at or near the close of business on the banking day next preceding the filing of a request or application for the issuance of process or for the determination of costs, or an application for a bond or other court-required undertaking.

Section 676.12 provides that, if an obligation is expressed or a loss is incurred in a foreign money, the country issuing or adopting that money substitutes a new money in place of that money, the obligation or the loss is treated as if expressed or incurred in the new money at the rate of conversion the issuing country establishes for the payment of like obligations or losses denominated in the former money.

Section 676.13 specifies that, unless displaced by particular provisions of this title, the principles of law and equity, including the law merchant, and the law relative to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress, coercion, mistake, bankruptcy, or other validating or invalidating causes supplement its provisions.

Section 676.14 requires this title to be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this title among states enacting it.

Section 676.15 contains a severability clause.