Uniform Foreign Money Claims Act Law and Legal Definition

The Uniform Foreign Money Claims Act (UFMCA) was created by the National Conference of Commissioners on Uniform State Law (NCCUSL) in 1989. This act simplifies international business by allowing courts in the United States to accept or render judgments valued in foreign currency. UFMCA allows any claimant to assert a claim in foreign money. It also allows any opposing party to contest such a claim, and to assert and prove that different money should be the basis for the claim. UFMCA serves the goals of permitting claims in foreign currency and of establishing a fair conversion to dollars. It provides for temporary valuations of foreign money claims in dollars for taking certain provisional steps in an action, like seizing or restraining assets pursuant to a writ of attachment, assessing costs of litigation, or determining the amount of a surety bond. The time for making a temporary valuation is the banking day next preceding the filing of the application for the specific process of the court, and the rate is the bank-offered spot rate of exchange prevailing on that day. Many states in the U.S. have adopted the provisions of the act.