Introduction of the Euro Bill
Provide for the effect on legal obligations of the introduction of the Euro, and for matters incidental thereto or connected therewith.
Enacted by the Legislative Council.
1. Short title and commencement
(1) This Ordinance may be cited as the Introduction of the Euro Ordinance.
(2) This Ordinance shall come into operation on a day to be appointed by the Secretary for Financial Services by notice in the Gazette.
2. Interpretation
In this Ordinance, unless the context otherwise requires---
"ECU" (歐洲貨幣單位) means the European Currency Unit, which is the currency basket used from time to time as the unit of account of the European Communities;
"Euro" (歐羅) means the single currency of the participating member states from time to time of the European Union that adopt such currency in accordance with the Treaty on European Union signed on 7 February 1992 as amended;
"introduction of the Euro" (採用歐羅) means the adoption on or after 1 January 1999 of the Euro as the single currency of the participating member states from time to time of the European Union in accordance with the Treaty on European Union signed on 7 February 1992 as amended;
"legal obligation" (法律義務) includes any legal obligation arising under---
(a) any legislative provision, administrative action, judicial decision, contract, unilateral legal act or payment instrument other than bank notes and coins; or
(b) any other instrument, arrangement, transaction, decision or agreement with legal effect,
irrespective of whether the obligation is upon any individual, public body (whether or not it is a public body within the meaning of section 3 of the Interpretation and General Clauses Ordinance (Cap. 1)), public authority, private body, organ or any other person.
3. References to ECU after introduction of Euro
(1) On the introduction of the Euro, where any legal obligation refers (whether directly or indirectly) to the ECU as defined in the European Council Regulation No. 3320/94, then that reference shall be deemed to be a reference to the Euro at a rate of one Euro to one ECU.
(2) For the purposes of subsection (1), a reference in a legal obligation to the ECU shall be presumed to be a reference to the ECU as defined in the European Council Regulation No. 3320/94 unless it is otherwise expressly agreed or provided.
4. Continuity of obligations
Unless it is otherwise expressly agreed or provided---
(a) in respect of a legal obligation; and
(b) by reference to the introduction of the Euro,
then it is hereby declared that---
(i) the introduction of the Euro and the changes consequential upon it;
(ii) the application of the law of currency (lex monetae principle) on or after the introduction of the Euro; or
(iii) the provisions of this Ordinance,
shall not have the effect of---
(A) discharging or excusing any performance required under the obligation; or
(B) giving any obligor or obligee under the obligation the right to alter or terminate the obligation unilaterally.
5. Saving
For the avoidance of doubt, it is hereby declared that section 4 shall not affect the operation of the law relating to the validity or enforceability of a legal obligation in any case where that section is not applicable.
Explanatory Memorandum
This Bill expressly provides for certain matters consequent upon the adoption of the Euro as the single currency of the participating member states of the European Union ("introduction of the Euro").
2. Clause 2 defines the terms used in the Bill.
3. Clause 3 deals with the references in legal obligations to the ECU, which is the unit of account to be replaced by the Euro. The effect under clause 3 is that any reference in a legal obligation to the ECU shall be deemed to be a reference to the Euro at the rate of one Euro to one ECU, unless it is expressly agreed or provided that the ECU referred to is not the ECU as defined in the European Council Regulation No. 3320/94.
4. Clause 4 declares that subject to any express agreement or provision to the contrary, the introduction of the Euro and the changes consequential upon its introduction shall not discharge or excuse any performance under a legal obligation, nor give the obligor or the obligee to the obligation the right to unilaterally alter or terminate the obligation.
5. Clause 5 is a saving provision to put it beyond doubt that the effect of clause 4 is confined to cases where that clause is applicable and shall not otherwise affect the operation of the law relating to the validity or enforceability of a legal obligation.
