32-41 Uniform Foreign-Money Claims Act
Download pdf
Loading PDF...
<![CDATA[CHAPTER 32-41UNIFORM FOREIGN-MONEY CLAIMS ACT32-41-01. Definitions. As used in this chapter, unless the context otherwise requires:1."Action" means a judicial proceeding or arbitration in which a payment in money may<br>be awarded or enforced with respect to a foreign-money claim.2."Bank-offered spot rate" means the spot rate of exchange at which a bank will sell<br>foreign money at a spot rate.3."Conversion date" means the banking day before the date on which money, in<br>accordance with this chapter, is:a.Paid to a claimant in an action or distribution proceeding;b.Paid to the official designated by law to enforce a judgment or award on behalf<br>of a claimant; orc.Used to recoup, set off, or counterclaim in different moneys in an action or<br>distribution proceeding.4."Distribution proceeding" means a judicial or nonjudicial proceeding for the<br>distribution of a fund in which one or more foreign-money claims is asserted and<br>includes an accounting, an assignment for the benefit of creditors, a foreclosure, the<br>liquidation or rehabilitation of a corporation, limited liability company, or other entity,<br>and the distribution of an estate, trust, or other fund.5."Foreign money" means money other than money of the United States.6."Foreign-money claim" means a claim upon an obligation to pay, or a claim for<br>recovery of a loss, expressed in or measured by a foreign money.7."Money" means a medium of exchange for the payment of obligations or a store of<br>value authorized or adopted by a government or by intergovernmental agreement.8."Money of the claim" means the money determined as proper pursuant to section<br>32-41-04.9."Rate of exchange" means the rate at which money of one country may be<br>converted into money of another country in a free financial market convenient to or<br>reasonably usable by a person obligated to pay or to state a rate of conversion. If<br>separate rates of exchange apply to different kinds of transactions, the term means<br>the rate applicable to the particular transaction giving rise to the foreign-money<br>claim.10."Spot rate" means the rate of exchange at which foreign money is sold by a bank or<br>other dealer in foreign exchange for immediate or next day availability or for<br>settlement by immediate payment in cash or equivalent, by charge to an account, or<br>by an agreed delayed settlement not exceeding two days.11."State" means a state of the United States, the District of Columbia, the<br>Commonwealth of Puerto Rico, or a territory or insular possession subject to the<br>jurisdiction of the United States.32-41-02. Scope. This chapter applies only to a foreign-money claim in an action ordistribution proceeding. This chapter applies to foreign-money issues even if other law under the<br>conflict of laws rules of this state applies to other issues in the action or distribution proceeding.Page No. 132-41-03.Variation by agreement.The effect of this chapter may be varied byagreement of the parties made before or after commencement of an action or distribution<br>proceeding or the entry of judgment. Parties to a transaction may agree upon the money to be<br>used in a transaction giving rise to a foreign-money claim and may agree to use different moneys<br>for different aspects of the transaction. Stating the price in a foreign money for one aspect of a<br>transaction does not alone require the use of that money for other aspects of the transaction.32-41-04. Determining money of the claim.The money in which the parties to atransaction have agreed that payment is to be made is the proper money of the claim for<br>payment. If the parties to a transaction have not otherwise agreed, the proper money of the<br>claim, as in each case may be appropriate, is the money:1.Regularly used between the parties as a matter of usage or course of dealing;2.Used at the time of a transaction in international trade, by trade usage or common<br>practice, for valuing or settling transactions in the particular commodity or service<br>involved; or3.In which the loss was ultimately felt or will be incurred by the party claimant.32-41-05. Determining amount of the money of certain contract claims.1.If an amount contracted to be paid in a foreign money is measured by a specified<br>amount of a different money, the amount to be paid is determined on the conversion<br>date.2.If an amount contracted to be paid in a foreign money is to be measured by a<br>different money at the rate of exchange prevailing on a date before default, that rate<br>of exchange applies only to payments made within a reasonable time after default,<br>not exceeding thirty days. Thereafter, conversion is made at the bank-offered spot<br>rate on the conversion date.3.A monetary claim is neither usurious nor unconscionable because the agreement on<br>which it is based provides that the amount of the debtor's obligation to be paid in the<br>debtor's money, when received by the creditor, must equal a specified amount of the<br>foreign money of the country of the creditor. If, because of unexcused delay in<br>payment of a judgment or award, the amount received by the creditor does not equal<br>the amount of the foreign money specified in the agreement, the court or arbitrator<br>shall amend the judgment or award accordingly.32-41-06. Asserting and defending foreign-money claim.1.A person may assert a claim in a specified foreign money. If a foreign-money claim<br>is not asserted, the claim is in United States dollars.2.An opposing party may allege and prove that a claim, in whole or in part, is in a<br>different money than that asserted by the claimant.3.A person may assert a defense, setoff, recoupment, or counterclaim in any money<br>without regard to the money of other claims.4.The determination of the proper money of the claim is a question of law.32-41-07.Judgments and awards on foreign-money claims - Times of moneyconversion - Form of judgment.1.Except as provided in subsection 3, a judgment or award on a foreign-money claim<br>must be stated in an amount of the money of the claim.Page No. 22.A judgment or award on a foreign-money claim is payable in that foreign money or,<br>at the option of the debtor, in the amount of United States dollars which will<br>purchase that foreign money on the conversion date at a bank-offered spot rate.3.Assessed costs must be entered in United States dollars.4.Each payment in United States dollars must be accepted and credited on a<br>judgment or award on a foreign-money claim in the amount of the foreign money<br>that could be purchased by the dollars at a bank-offered spot rate of exchange at or<br>near the close of business on the conversion date for that payment.5.A judgment or award made in an action or distribution proceeding on both a defense,<br>setoff, recoupment, or counterclaim and the adverse party's claim, must be netted<br>by converting the money of the smaller into the money of the larger, and by<br>subtracting the smaller from the larger, and must specify the rates of exchange<br>used.6.A judgment substantially in the following form complies with subsection 1:IT IS ADJUDGED AND ORDERED, that defendant (insert name) pay toplaintiff (insert name) the sum of (insert amount in the foreign money) plus<br>interest on that sum at the rate of (insert rate) percent a year or, at the option of<br>the judgment debtor, the number of United States dollars which will purchase<br>the (insert name of foreign money) with interest due, at a bank-offered spot rate<br>at or near the close of business on the banking day next before the day of<br>payment, together with assessed costs of (insert amount) United States dollars.7.If a contract claim is of the type covered by section 32-41-05, the judgment or award<br>must be entered for the amount of money stated to measure the obligation to be<br>paid in the money specified for payment or, at the option of the debtor, the number<br>of United States dollars which will purchase the computed amount of the money of<br>payment on the conversion date at a bank-offered spot rate.8.A judgment must be docketed and indexed in foreign money in the same manner,<br>and has the same effect as a lien, as other judgments.A judgment may bedischarged by payment.32-41-08. Conversions of foreign money in distribution proceeding. The rate ofexchange prevailing at or near the close of business on the day the distribution proceeding is<br>initiated governs all exchanges of foreign money in a distribution proceeding. A foreign-money<br>claimant in a distribution proceeding shall assert its claim in the named foreign money and show<br>the amount of United States dollars resulting from a conversion as of the date the proceeding<br>was initiated.32-41-09. Prejudgment and judgment interest.1.With respect to a foreign-money claim, recovery of prejudgment or preaward interest<br>and the rate of interest to be applied in the action or distribution proceeding, except<br>as provided in subsection 2, are matters of the substantive law governing the right to<br>recovery under the conflict-of-laws rules of this state.2.The court or arbitrator shall increase or decrease the amount of prejudgment or<br>preaward interest otherwise payable in a judgment or award in foreign money to the<br>extent required by the law of this state governing a failure to make or accept an offer<br>of settlement or offer of judgment, or conduct by a party, or its attorney causing<br>undue delay or expense.3.A judgment or award on a foreign-money claim bears interest at the rate applicable<br>to judgments of this state.Page No. 332-41-10. Enforcement of foreign judgments.1.If an action is brought to enforce a judgment of another jurisdiction expressed in a<br>foreign money and the judgment is recognized in this state as enforceable, the<br>enforcing judgment must be entered as provided in section 32-41-07, whether or not<br>the foreign judgment confers an option to pay in an equivalent amount of United<br>States dollars.2.A foreign judgment may be docketed in accordance with any rule or statute of this<br>state providing a procedure for its recognition and enforcement.3.A satisfaction or partial payment made upon the foreign judgment, on proof thereof,<br>must be credited against the amount of foreign money specified in the judgment,<br>notwithstanding the entry of judgment in this state.4.A judgment entered on a foreign-money claim only in United States dollars in<br>another state must be enforced in this state in United States dollars only.32-41-11.Determining United States dollar value of foreign-money claims forlimited purposes.1.Computations under this section are for the limited purposes of the section and do<br>not affect computation of the United States dollar equivalent of the money of the<br>judgment for the purpose of payment.2.For the limited purpose of facilitating the enforcement of provisional remedies in an<br>action, the value in United States dollars of assets to be seized or restrained<br>pursuant to a writ of attachment, garnishment, execution, or other legal process, the<br>amount of United States dollars at issue for assessing costs, or the amount of United<br>States dollars involved for a surety bond or other court-required undertaking, must<br>be ascertained as provided in subsections 3 and 4.3.A party seeking process, costs, bond, or other undertaking under subsection 2 shall<br>compute in United States dollars the amount of the foreign money claimed from a<br>bank-offered spot rate prevailing at or near the close of business on the banking day<br>before the filing of a request or application for the issuance of process or for the<br>determination of costs, or an application for a bond or other court-required<br>undertaking.4.A party seeking the process, costs, bond, or other undertaking under subsection 2<br>shall file with each request or application an affidavit or certificate executed in good<br>faith by its counsel or a bank officer, stating the market quotation used and how it<br>was obtained, and setting forth the calculation.Affected court officials incur noliability, after a filing of the affidavit or certificate, for acting as if the judgment were in<br>the amount of United States dollars stated in the affidavit or certificate.32-41-12. Effect of currency revalorization. If, after an obligation is expressed or aloss is incurred in a foreign money, the country issuing or adopting that money substitutes a new<br>money in place of that money, the obligation or the loss is treated as if expressed or incurred in<br>the new money at the rate of conversion the issuing country establishes for the payment of like<br>obligations or losses denominated in the former money.If the substitution occurs after ajudgment or award is entered on a foreign-money claim, the court or arbitrator shall amend the<br>judgment or award by a like conversion of the former money.32-41-13. Supplementary general principles of law. Unless displaced by this chapter,the principles of law and equity, including the law merchant, and the law relative to capacity to<br>contract, principal and agent, estoppel, fraud, misrepresentation, duress, coercion, mistake,<br>bankruptcy, or other validating or invalidating causes supplement this chapter.Page No. 4Document Outlinechapter 32-41 uniform foreign-money claims act]]>