PUBLIC LAW 106-37—JULY 20, 1999 113 STAT. 189 (2) INTERPRETATION OF CONTRACT. — In any Y2K action in which a contract to which paragraph (1) appHes is silent as to a particular issue, the interpretation of the contract as to that issue shall be determined by applicable law in effect at the time the contract was executed. (3) UNCONSCIONABILITY.— Nothing in paragraph (1) sheJl prevent enforcement of State law doctrines of unconscionability, including adhesion, recognized as of January 1, 1999, in controlling judicial precedent by the courts of the State whose law applies to the Y2K action. (e) PREEMPTION OF STATE LAW. —This Act supersedes State law to the extent that it establishes a rule of law applicable to a Y2K action that is inconsistent with State law, but nothing in this Act implicates, alters, or diminishes the ability of a State to defend itself against any claim on the basis of sovereign immunity. (f) APPLICATION WITH YEAR 2000 INFORMATION AND READINESS DISCLOSURE ACT. —Nothing in this Act supersedes any provision of the Year 2000 Information and Readiness Disclosure Act. (g) APPLICATION TO ACTIONS BROUGHT BY A GOVERNMENT ENTITY.— (1) IN GENERAL. —To the extent provided in this subsection, this Act shall apply to an action brought by a government entity described in section 3(1)(C). (2) DEFINITIONS. —In this subsection: (A) DEFENDANT.— (i) IN GENERAL. — The term "defendant" includes a State or local government. (ii) STATE.—The term "State" mesins each of the severed States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Isleuids. (iii) LOCAL GOVERNMENT. — The term "local government" means— (I) any county, city, town, township, peirish, village, or other general purpose politiced subdivision of a State; and (II) any combination of political subdivisions described in subclause (I) recognized by the Secretary of Housing and Urban Development. (B) Y2K UPSET.— The term "Y2K upset"— (i) means an exceptional temporary noncompliance with applicable federally enforceable measurement, monitoring, or reporting requirements directly related to a Y2K failure that are beyond the reasonable control of the defendant chsirged with compliance; and (ii) does not include— (I) noncompliance with applicable federally enforceable measurement, monitoring, or reporting requirements that constitutes or would create an imminent threat to public health, safety, or the environment; (II) noncompliance with applicable federally enforceable measurement, monitoring, or reporting requirements that provide for the safety and soundness of the bsinking or monetary system, or
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