(a) Continuity of contract.—

1. (1) If a subject or medium of payment of a contract, security or instrument is a currency that has been substituted or replaced by the euro, the euro shall be a commercially reasonable substitute and substantial equivalent that may be either:

   1. (i) used in determining the value of that currency; or

   2. (ii) tendered;

      in each case at the conversion rate specified in and otherwise calculated in accordance with the regulations adopted by the Council of the European Union.

2. (2) If a subject or medium of payment of a contract, security or instrument is the ECU, the euro will be a commercially reasonable substitute and substantial equivalent that may be either:

   1. (i) used in determining the value of that currency; or

   2. (ii) tendered;

      in each case at the conversion rate specified in and otherwise calculated in accordance with the regulations adopted by the Council of the European Union.

3. (3) Performance of any of the obligations described in paragraph (1) or (2) may be made in the currency or currencies originally designated in the contract, security or instrument so long as the currency or currencies remain legal tender or in euro, but not in any other currency, whether or not the other currency:

   1. (i) has been substituted or replaced by the euro; or
   2. (ii) is a currency that is considered a denomination of the euro and has a fixed conversion rate with respect to the euro.

(b) Effect of currency substitution on performance.— None of the following shall have the effect of discharging or excusing performance under any contract, security or instrument or give a party the right unilaterally to alter or terminate any contract, security or instrument:

1. (1) Introduction of the euro.
2. (2) Tender of euros in connection with any obligation in compliance with subsection (a)(1) or (2).
3. (3) Determination of the value of any obligation in compliance with subsection (a)(1) or (2).
4. (4) Calculation or determination of the subject or medium of payment of a contract, security or instrument with reference to an interest rate or other basis that has been substituted or replaced due to the introduction of the euro and that is a commercially reasonable substitute and substantial equivalent.

(g) Definitions.— As used in this section, the following words and phrases shall have the meanings given to them in this subsection:

1. "ECU" or "European currency unit." The currency basket that is from time to time used as the unit of account of the European Community, as defined in European Council Regulation No.3320/94.
2. "Euro." The currency of participating member states of the European Union that adopt a single currency in accordance with the Treaty on European Union signed February 7, 1992.
3. "Introduction of the euro." Includes, but is not limited to, the implementation from time to time of economic and monetary union in member states of the European Union in accordance with the Treaty on European Union signed February 7, 1992.