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 a regulated or lawful money banking system, either extreme position also works, at least within its own terms.
This in effect released base lawful money into the banking system that could be used for the additional creation of deposits (Friedman and Schwartz [1963] 1993, p.
Meaning that, although a "one-dollar" FRN must be redeemed "in lawful money," the medium of redemption will be whatever Congress--in defiance of its constitutional duty--wants it to be other than gold and silver coins, and notwithstanding that the thing used for redemption is worth far less in the marketplace than a "dollar" containing 371.
A Warrant may be exercised by the holder thereof, before the Extended Date Fixed for Redemption, by (i) surrendering a duly executed Warrant to Continental Stock Transfer & Trust Company, 2 Broadway, New York, New York 10004, and (ii) submitting to the Warrant Agent, in lawful money of the United States of America, in cash or certified bank check payable to the order of the Company, the price of $5.
New York time on April 17, 1997, by (i) surrendering a duly executed Class A Warrant to American Stock Transfer & Trust Company, 40 Wall Street, New York, New York 10005, and (ii) submitting to the Warrant Agent, in lawful money of the United States of America, in cash or certified bank check payable to the order of YieldUP International Corporation, the price of $7.