. concerned the constitutionality of the Legal Tender Act of 1862. The court, in a 5-3 vote (including a majority by the sick Grier), repealed the Legal Tender Act, denying Congress the power to issue fiat currency as legal tender. The prosecution actually argued in court that the 90% silver Liberty coins were a counterfeit of the usual twenty-five cent coin. The Associated Press reported: « Federal prosecutors successfully argued that von NotHaus was actually trying to issue the silver coins as U.S. currency. Liberty dollars, which were available in denominations of 5, 10, 20, and 50, also included a dollar sign, the word « dollar, » and the motto « Trust in God, » similar to « In God We Trust » that appears on U.S. coins. A jury did find him guilty, suggesting the degree of influence on the judicial system to achieve the outcome prosecutors wanted. The Norwegian krone (NOK) is legal tender in Norway according to the Central Bank (Norwegian: Sentralbankloven) of 24 May 1985. [30] However, no one is obliged to accept more than 25 coins of each denomination (of which 1, 5, 10 and 20 NOK denominations are currently in circulation).
The small Republic of the Marshall Islands (RMI) has also announced that it will introduce a new cryptocurrency, the Sovereign, as legal tender. The state will be tied to an existing, decentralized peer-to-peer cryptocurrency market. Currently, the U.S. dollar acts as currency and legal tender in the RMI and will continue to do so alongside the new legal tender when the government begins issuing states. The Australian dollar, consisting of banknotes and coins, is legal tender in Australia. Australian banknotes are legal tender under the Reserve Bank Act 1959, p.36(1),[12] with no limit on the amount. The Currency Act 1965[13] also provides that Australian coins intended for general circulation are also legal tender, but only for the following amounts: The Decimal Currency Act 1970 regulated legal tender before the introduction of the euro and provided provisions similar to those provided for in British law (all taken from the old British law). Namely: coins over 10 pence were legal tender for payment of up to £10, coins of up to £10 pence were legal tender for a payment of up to £5 and bronze coins became legal tender for a payment not exceeding £20 pence. Maundy currency is legal tender but may not be accepted by retailers and is worth much more than its face value due to its rare value and silver content. New Zealand has a complex history of legal tender. English law applied either from 6 January 1840 (when the Governor of New South Wales annexed New Zealand by proclamation) or from 14 January 1840 (when Captain Hobson (of the Royal Navy) was sworn in as Lieutenant-Governor of New Zealand). The English Laws Act 1858 later confirmed that English law passed before 14 January 1840 was and was the law of New Zealand insofar as it was applicable to local circumstances.
The (UK) Coinage Act 1816 therefore applied and British coins were confirmed as legal tender in New Zealand. (Exceptionally, the Reserve Bank (founded in 1934) was not allowed to issue legal tender coins until 1989. The coins were to be issued by the Minister of Finance.) Sometimes countries accept the legal tender of another country if they are close to the border or have close trade relations. Shops and restaurants near the Canada-U.S. border accept U.S. and Canadian dollars to make it easier for tourists. Some countries around the world actually took the U.S. dollar as their own legal tender rather than their currency because they felt the dollar was more stable in value. This practice is called dollarization or currency substitution. This note is legal tender (literal translation, money in payment of the debt) according to the law. 11.
In December 2016, the Venezuelan government announced demonetization after inflation of nearly 500% in the country. The people of the country had 3 days to get rid of the 100 bolivar notes (the most used currency) after the introduction of new notes of higher value. Until June 15, 2017, there were 7 renewals (one per month) of the legal use of 100 bolivar notes. The 100 bolivar notes were still legal tender as of 30 December 2017. Legal tender is used exclusively for the secured settlement of debts and does not affect a party`s right to refuse delivery in a transaction. [38] The New Taiwan Dollar issued by the Central Bank of the Republic of China (Taiwan) is legal tender for all payments made within the territory of the Republic of China, Taiwan. [33] However, since 2007,[34] candidates for election officials in the Republic of China are no longer allowed to file a deposit. [35] The Indian rupee is de facto legal tender in India. The Indian rupee is also legal tender in Nepal and Bhutan, but the Nepalese rupee and Bhutanese ngultrum are not legal tender in India.
The Nepalese rupee and the Bhutanese ngultrum are attached to the Indian rupee. [26] On 8 November 2016, Prime Minister Narendra Modi announced that the existing INR 500 and INR 1000 notes would no longer be accepted as legal tender in order to combat counterfeiting, tax evasion and the shadow economy. [27] The Reserve Bank of India has described a system whereby holders of such notes can either deposit them into their bank accounts for the full and unlimited value or exchange the notes for new ones, subject to a cap. [28] Legal tender is a form of money that courts must recognize as a satisfactory payment for monetary debts. [1] Each jurisdiction determines what is legal tender, but it is essentially anything that extinguishes the debt when it is offered (« offered ») to pay a debt. The creditor is not obliged to accept the payment offered, but the act of offering payment in legal tender releases the debt. Although the Reserve Bank Act 1959 and the Currency Act 1965 stipulate that Australian notes and coins are legal tender, Australian notes and coins do not necessarily have to be used in transactions, and refusing to accept payments as legal tender is not illegal. It appears that a service provider is free to determine the commercial conditions under which payment is made before the conclusion of the « contract » of the supply or service. If a supplier of goods or services specifies other means of payment before the contract is concluded, there is generally no obligation to accept legal tender as payment.
This is the case even if it is an existing debt. However, refusing to accept legal tender to settle an existing debt if no other means of payment/settlement has been determined in advance could have consequences in legal proceedings. [15] [16] The value of Federal Reserve notes is determined by federal and U.S. law. Ministry of Finance due to the economic activity of the country. Legal tender only works properly if the country`s economy functions properly. Federal Reserve notes have no expiration date, but many abandon circulation after so many years because they are beaten. In the case of coins with a face value greater than $10, a payment is legal tender only for the value of a single coin of that value. Where, by virtue of one or more obligations, several sums are payable by one person to another on the same day, the sum of those sums is deemed to be due and payable on that date. Another legal tender was adopted in 1863, and by the end of the war, nearly half a billion dollars had been spent on greenbacks. The law on legal tender laid the foundation for the creation of a permanent currency in the decades following the civil war.