Quote Originally Posted by Bentley View Post
I made my deposit, endorsing on backs of checks, "to be redeemed for lawful money under 12 USC 411" at my credit union and the legal department called and refused to accept the deposits. They claimed to 'not accept any "restricted" deposits'. I asked if they were insured by the federal government (which places them in the federal reserve system and under the Federal Reserve Act) and they said yes, so I simply asked for them to put their objection in writing and to cite the law under which they were refusing to accept deposits. They said they will send a letter next week with this information. I'll post their response.

Bentley

Sounds good Bentley, would love to see the followup. I too have a letter in with my credit union, I put it straight to their legal team...


[QUOTE]
This leads me to a simple inquiry; I’m wondering if I can open an account with (your credit union), a non-interest bearing account, of which the balance cannot be used towards fractional lending? If I only deposit United States currency notes, defined in 31 USC 5115, found below in bold, it is illegal for members of the Federal Reserve System to use these funds as a reserve. Therefore, I would like to know how to request funds be stored in such a way.

(a) The Secretary of the Treasury may issue United States currency notes. The notes—
(1) are payable to bearer; and
(2) shall be in a form and in denominations of at least one dollar that the Secretary prescribes.
(b) The amount of United States currency notes outstanding and in circulation—
(1) may not be more than $300,000,000; and
(2) may not be held or used for a reserve.

[QUOTE/]

They responded to my last letter, we'll see about this one...