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 ?
Mr Wilson said he had visited a Darlington Building Society branch to inquire if the note was legal tender.
While counterfeiting legal tender can be a serious offense, O'Neill downplayed the incident as a prank taken too far.
This 2001 law started the "dollarization" process in El Salvador, Although it regulates the coexistence of two currencies of legal tender and free circulation in the country, since then, the local financial sector began operating solely in US dollars and all transactions performed through this sector were quoted in dollars, which led the Salvadoran "colon" to fade away and turned the US dollar into the main currency in El Salvador.
IN four days the greatest monetary change in history will begin as the euro becomes legal tender in 11 countries across Europe.
I thought all money was legal tender and had to be accepted by shopkeepers.
MTB"), a leading distributor of gold, silver, platinum and palladium bars and legal tender bullion coins for industrial and investment purposes, said today they have been designated by the New York Mercantile Exchange, ("NYMEX"), to be a Licensed Depository authorized to act as a Delivery Point for its gold, platinum and palladium Futures Contracts.
They remain legal tender and continue to be produced with the current technical specifications (such as metal, weight and size) and without changing the production and issuance processes.
FURIOUS, Glasgow, is wrong in stating that Scottish banknotes are legal tender - Scottish banknotes are not legal tender anywhere.
The banknotes bearing the signatures of his predecessors shall continue to remain in circulation as Legal Tender.
On This Day: 1811: Paper money became legal tender in Britain.
They fled when she shouted at them to leave but not before they had taken the jewellery and some old pounds 10 notes, which are no longer legal tender.
They will be legal tender on the Isle of Man and - at shopkeepers' discretion - on mainland Britain.