Quote Originally Posted by doug555 View Post
the system is presumed to have the duty to "redeem" it into lawful money.
What evidence do you have of this?

They shall be redeemed on demand

My interpretation is that it is the demand itself which executes the redemption. Nothing happens in "the system" - other than the supposed segregation of redeemed funds. To quote David Merrill; "Redemption is between the ears."

Therefore, I believe the "redeemed" verbiage removes all possibility for ambiguity of interpretation as to wether or not demand was made.