Canadian action - response from CRA

[David Merrill]

Thank you again;

That certainly sounds as though, short of a definition within that act, that the Parliament in Canada is deferring to the US Congress to define lawful money for Canada.

The debentures issued therefor may be made payable at such places, within or without Canada, and in such currencies, whether of Canada or some other country, as the Council deems expedient, and if the debentures are, or have been, made payable in lawful money of the United States of America, a dollar so payable shall, for the purpose of such calculation or of any other calculation directed towards ascertaining whether or not any proposed borrowing is within the power of Council, be deemed to be the equivalent of a dollar payable in lawful money of Canada.

Described by the courts:

In the exercise of that power Congress has declared that Federal Reserve Notes are legal tender and are redeemable in lawful money.

and

United States notes shall be lawful money, and a legal tender in payment of all debts, public and private, within the United States, except for duties on imports and interest on the public debt.