(2) Any payment, conveyance, transfer, assignment, or delivery of property or interest therein, made to or for the account of the United States, or as otherwise directed, pursuant to this subdivision or any rule, regulation, instruction, or direction issued hereunder shall to the extent thereof be a full acquittance and discharge for all purposes of the obligation of the person making the same; and no person shall be held liable in any court for or in respect to anything done or omitted in good faith in connection with the administration of, or in pursuance of and in reliance on, this subdivision, or any rule, regulation, instruction, or direction issued hereunder.


Can someone explain this "Like I'm 5."

I get the lawful money redemption, but, at some point in the 30's, redemption no longer existed. The currency changed, weren't redeemable anymore. I'm sure the ones printed prior were, but, at this point, with the more current bills, I feel as if the words "discharge" carry more weight.

We receive bank checks for currency. I get a loan, I increase the amount of currency. I pay it back, that amount of currency still exists in the system, at least within the credits/debits within the banks. When banks need cash, they can get federal reserve notes, which really are just paper representations of commercial loans (chopped up into little tiny increments).

I just need to understand the "discharge" process. Since we don't get paid actual money for anything anymore, presentment with bank notes, promissory notes then allow us to "discharge" a debt? Maybe give a scenario of the process.