Quote Originally Posted by itsmymoney View Post
Thanks to all for educating some of us uninitiated in these matters. I am intending to open a new modified-agreement bank account within the next 2 weeks (or credit union) and will attempt to get my checks as 'Pay To' instead of the typical 'Pay To the Order of'. Questions I have regarding a lawful money transaction via checks payable to merchants:

If my account is a modified-agreement (R4LM novation on the signature card): Is my debt obligation satisfied at the time of the check transfer (payment from my bank to payee) if the check reads 'Pay To the Order Of'? I'm thinking just always issue 'Pay To' to avoid any doubt.

If my account is NOT a modified-agreement but all my deposits into that account are with lawful money, must one issue a 'Pay To' check to satisfy ones debt obligation where the payment is not further extended/loaned as a result?

I guess the bottom line here is, when is issuing a check 'safe' where the debt is not further extended as credit beyond that transaction where the payer would otherwise in effect be loaning the money to the payee (and his bank) instead of just 'buying goods and services'?
Actually this came up in discussion with the suitors about seven years back. When you change the check from Pay to the Order of to Pay to you deprive the payee of choice whether or not to redeem lawful money. So we chose not to. Unless of course it is a public utility, then you can choose how that utility redeems or not. Say it is the lawn boy. You might tell him his options and let him decide.

I find your two questions difficult because of perspective I suppose. You are in control of your demand or not. That is the courtesy extended to the lawn boy.

I have not made sense yet how Congress can peg an inelastic currency (US notes) to elastic currency in value honestly. With that little bit of nonsense preceeding what goes on behind the teller window at the bank, I am finding it very difficult to get bearings. I was in charge of calibrating machinery and test equipment at a large manufacturing firm and I think that may be my difficulty. I need some kind of a standard and beyond that teller window they have lost their bearing.


Regards,

David Merrill.