Update as of 10/27...

Decided to try my luck with another bank. This time, I did not tell them of my intentions... just listened politely as the Bank officer told me all about the features, overdraft protection, etc.
It was for a non-interest bearing checking account. I handed her the state-issued DL, and a $50FRN to open the account with.
After her tap tap tapping on her keyboard for quite a while, she finally handed me the "signature card" which is actually an 8.5x11 piece of paper. She indicated where I was to sign. I thoroughly read it through, then did some changes.
First, I crossed through U.S. Citizen, and wrote "man" in its place. Then in the section called "Other Terms/Information", I wrote "On all transactions, demand is made for lawful money per 12USC411", and signed with Without Prejudice above my name.

Great I thought! They didn't even question it.

About 15 minutes later and 12 miles down the road I get a call from the branch manager telling me that he checked with "Legal" and this is not allowed. I asked him if he was aware that Title 12 is US law, but he didn't want to hear it. He said to come in and change it, or they will have to cancel the account.

Can they do this once they've accepted a cash deposit?

What other recourse do we have? It seems banks are catching on to this, and want no part of it. If this is written into the US code and pertains to Federal Reserve Banks and branches, how can they ignore this law?

Anyone?

Thanks.