US Notes are redeemable

[Keith Alan]

US coin must be lawful money, since FRN can be redeemed by coin, dollar for dollar. But that can be inconvenient.

Also, since Eagles are denominated legal tender, then they, too, serve the dual function of lawful money and legal tender.

What I'm getting at, is all the currency in general circulation serves two functions, depending on the manner in which they are accepted.

It's the acceptance that matters. At least, that's how it is in my mind.

[walter]

There are big differences between coins and paper notes.

Coins have no signature where as paper notes do.
Coins are only legal tender up to certain domination's.
After the allowed limit its not legal tender anymore. Is this why the tax man doesn't care to much about coins?



As outlined in the Currency Act, there is a limit to the value of a transaction for which you can use only coins.[10] A payment in coins is a legal tender for no more than the following amounts for the following denominations of coins:

forty dollars if the denomination is two dollars or greater but does not exceed ten dollars;
twenty-five dollars if the denomination is one dollar;
ten dollars if the denomination is ten cents or greater but less than one dollar;
five dollars if the denomination is five cents; and
twenty-five cents if the denomination is one cent.

In the case of coins of a denomination greater than ten dollars, a payment is a legal tender for no more than the value of a single coin of that denomination.

[David Neil]

There are big differences between coins and paper notes.

Coins have no signature where as paper notes do.
Coins are only legal tender up to certain domination's.
After the allowed limit its not legal tender anymore. Is this why the tax man doesn't care to much about coins?



As outlined in the Currency Act, there is a limit to the value of a transaction for which you can use only coins.[10] A payment in coins is a legal tender for no more than the following amounts for the following denominations of coins:

forty dollars if the denomination is two dollars or greater but does not exceed ten dollars;
twenty-five dollars if the denomination is one dollar;
ten dollars if the denomination is ten cents or greater but less than one dollar;
five dollars if the denomination is five cents; and
twenty-five cents if the denomination is one cent.

In the case of coins of a denomination greater than ten dollars, a payment is a legal tender for no more than the value of a single coin of that denomination.

That would be Canadian law. I have not found that specified for US coins yet. What I did find that was interesting was at the US Dept of Treasury http://www.treasury.gov/resource-cen...al-tender.aspx.

That as legal tender, coins are legal for all debts. They say that businesses do not have to accept them but it appears the meaning of the words are they do not have to accept them prior to a transaction taking place, but that is a debt exists then the obligation can and will be met using US Treasury coins.

I have pondered the viability of paying for mortgage or car payment by check crossing out "_______ dollars" and writing in "_______ cents", showing without doubt that I am using lawful money to extinguish the debt and avoiding the 1st party lien that leaving the dollar implies