Quote Originally Posted by itsmymoney View Post
Doug555,

I see where you are headed with this (and my actual job-for-pay is to analyze every possibility), but the negotiable instrument is the check in your hand. If the stated 'money' on that check were truly previously 'redeemed' (regardless of lawful money or FRN's), then that check itself is non-negotiable. Meaning, the person trying to deposit or cash it was ALREADY PAID that amount via lawful money AND via a DIFFERENT check, coin, or other instrument - NOT the check in hand. So why would the bank then deposit/cash the check in hand if it was presumed to be already deposited/cashed based on the novation on the back?
But since the default currency for all transactions is private credit (FRNs), then one is not "ALREADY PAID that amount via lawful money"... right?

IMO, that presumption of using the default currency must always be rebutted.