legal tender


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Legal Tender

Anything that a jurisdiction has declared to be money. Historically, legal tender currency has been based on something like gold or silver; however, most money is now fiat money. That is, fiat money is that which has been declared to be legal tender by a government and would not be regarded as such without government backing. Legal tender may be used to pay a debt. In general, a merchant who does not accept legal tender currency has the debt canceled; that is, one is required to accept the legal tender or nothing at all.

legal tender

that part of a country's MONEY SUPPLY which, in the eyes of the law, is totally acceptable in discharge of a payment or debt. Coins and banknotes (CURRENCY) issued by the government fulfil this requirement. By contrast, a dealer or creditor is within his legal rights to refuse to accept as payment for a purchase or repayment of a debt a cheque drawn against a bank account.

legal tender

that part of a country's MONEY SUPPLY that is, in the eyes of the law, totally acceptable in payment for a purchase of a good or service or repayment of a debt. CURRENCY (BANK NOTES and COINS) issued by the government fulfil this requirement. By contrast, a trader is within his legal rights to refuse to accept as payment a cheque drawn against a BANK DEPOSIT. See MINT.
References in periodicals archive ?
In his 40-minute address, first in Hindi and later in English, the Prime Minister said the notes of Rs 500 and Rs 1000 "will not be legal tender from midnight tonight" and these will be "just worthless piece of paper.
It is not legal tender in the UK - and this is not claimed at any point.
The Bulgarian National Bank (BNB) replaced the note by a coin of the same denomination in 2002 but the note has remained a legal tender in parallel with the coin.
The old notes will remain legal tender, and it seems timely to publish a brief description of what 'legal tender' actually is, and how it works.
UNDER the Coinage Act of 1971, any payment above 20p made in bronze coins can be refused as it does not qualify as legal tender.
This currency has not yet been accepted as a legal tender by any government or central bank in the world.
uk/and look at the section on legal position, she will find the site (the Committee of Scottish Bankers) states that Scottish bank notes are NOT legal tender even in Scotland.
M2 EQUITYBITES-May 1, 2014-RBS and NatWest reminds customers they can still exchange Houblon GBP50 notes for legal tender at branches
BANKING AND CREDIT NEWS-May 1, 2014-RBS and NatWest reminds customers they can still exchange Houblon GBP50 notes for legal tender at branches
Arizona may soon recognize coin or bullion with gold or silver content to be legal tender.
In practical terms, it said that may legal tender money created by the federal union or the states or the "people" had to be gold or silver coins, or redeemable in gold or silver coins of specified weight and fineness.
The statement issued by CBO pointed out that this new banknote shall be in circulation as legal tender along with the existing banknotes, which shall continue to remain legal tender, and circulated side by side with these new notes.