Product successfully added to your shopping cart
Quantity
Total
There are 2 items in your cart.
There is 1 item in your cart.
Total products
$32.12
Total shipping
To be determined
Total
$32.12
More info
10/25/2017Legal tender - Wikipediahttps://en.wikipedia.org/wiki/Legal_tender#Demonetisation1/13
Legal tender
Legal tender
is a medium of payment recognized by a legal system to be valid for meeting a financial obligation.
[1]
Papercurrency and coins are common forms of legal tender in many countries. Legal tender is variously defined in different jurisdictions. Formally, it is anything which when offered in payment extinguishes the debt. Thus, personal cheques, creditcards, and similar non-cash methods of payment are not usually legal tender. The law does not relieve the debt obligationuntil payment is tendered. Coins and banknotes are usually defined as legal tender. Some jurisdictions may forbid orrestrict payment made other than by legal tender. For example, such a law might outlaw the use of foreign coins and bank notes or require a license to perform financial transactions in a foreign currency.Generally, designation of a particular form of money as legal tender means "that the designated money is valid paymentfor all debts unless there is a specific agreement to the contrary".
[2]
In some jurisdictions legal tender can be refused aspayment if no debt exists prior to the time of payment (where the obligation to pay may arise at the same time as the offerof payment). For example, vending machines and transport staff do not have to accept the largest denomination of banknote. Shopkeepers may reject large banknotes: this is covered by the legal concept known as invitation to treat. Underthe law, United States money as identified above is a valid and legal offer of payment for antecedent debts when tenderedto a creditor. By contrast, federal statutes do not require that someone who is not a pre-existing creditor must acceptcurrency or coins as payment for goods or services. Private businesses may formulate their own policies on whether toaccept cash unless state law requires otherw ise.
[3][4]
The right, in many jurisdictions, of a trader to refuse to do business with any person, means a purchaser may not insist onmaking a purchase and so declaring a legal tender in law, as anything other than an off ered payment for debts already incurred would not be effective.
1 Etymology2 Withdrawal and replacement of legal tender
2.1 Demonetisation2.2 Withdrawal from circulation2.3 Cashless society
3 Commemorative issues4 Status by country
4.1 Australia4.1.1 History4.2 Canada4.3 China4.4 Eurozone4.5 France4.6 Republic of Ireland4.6.1 Irish history4.7 India4.8 New Zealand4.9 Norway
Contents
10/25/2017Legal tender - Wikipediahttps://en.wikipedia.org/wiki/Legal_tender#Demonetisation2/13
4.10 Singapore and Brunei4.11 Switzerland and Liechtenstein4.12 Taiwan4.13 Thailand4.14 United Kingdom4.15 United States4.16 Venezuela
5 See also6 Notes7 External links
The term "legal tender" is from Middle English
tendren
, French
tendre
(verb form), meaning
to offer
. The
Latin
root is
tendere
(to stretch out), and the sense of
tender
as an
offer
is related to the etymology of the English word "extend" (tohold outward).
[5]
Coins and banknotes may cease to be legal tender if new notes of the same currency replace them or if a new currency isintroduced replacing the former one.
[6]
Examples of this are:
The United Kingdom, adopting decimal currency in place of pounds, shillings, and pence in 1971, Banknotesremained unchanged (except for the replacement of the 10 shilling note by the 50 pence coin). In 1968 and 1969decimal coins which had precise equivalent values in the old currency (5p, 10p, 50p - 1, 2, and 10 shillingsrespectively) were introduced, while decimal coins with no precise equivalent (½p, 1p, 2p equal to 1.2d (old pence),2.4d, 4.8d respectively) were introduced on 15 February 1971. The smallest and largest non-decimal circulatingcoins, the half penny and half crown, were withdrawn in 1969, and the other non-decimal coins with no preciseequivalent in the new currency (1d, 3d) were withdrawn later in 1971. Non-decimal coins with precise decimalequivalents (6d ( = 2½p), 1 and 2 shillings) remained legal tender either until the coins no longer circulated (1980 inthe case of the 6d), or the equivalent decimal coins were reduced in size in the early 1990s. The 6d coin waspermitted to remain in large circulation throughout the United Kingdom due to the London Underground committee'slarge investment in coin-operated ticketing machines that used it. Old coins returned to the Royal Mint through the UKbanking system will be redeemed by exchanging them for legal tender currency with no time limits; but coins issuedbefore 1947 have a higher value for their silver content than for their monetary value.The successor states of the Soviet Union replacing the Soviet ruble in the 1990s.Currencies used in the Eurozone before being replaced by the euro are not legal tender, but all banknotes areredeemable for euros for a minimum of 10 years (for certain notes, there is no time limit).India demonetised its 500 and 1000 rupee notes on November 8, 2016. This action affected 86 percent of all cash incirculation. The demonetisation action was intended to curb black money, the hoarding of unaccounted cash, andsponsorship of terrorism, but also led to long queues from bank runs, leaving more than 30 people dead.
[7]
The oldnotes are now being replaced by new 500 and 2000 rupee notes.
Individual coins or banknotes can be demonetised (http://demonetization.in) and cease to be legal tender (for example,the pre-decimal United Kingdom farthing or the Bank of England 1 pound note), but the Bank of England does redeem allBank of England banknotes by exchanging them for legal tender currency at its counters in London (or by post) regardlessof how old they are. Banknotes issued by retail banks in the UK (Scotland and Northern Ireland) are not legal tender, butone of the criteria for legal protection under the Forgery and Counterfeiting Act is that banknotes must be payable ondemand, therefore withdrawn notes remain a liability of the issuing bank without any time limits.
Etymology ithdrawal and replacement of legal tender
Demonetisation
10/25/2017Legal tender - Wikipediahttps://en.wikipedia.org/wiki/Legal_tender#Demonetisation3/13
In the case of the euro, coins and banknotes of former national currencies were in some cases considered legal tender from1 January 1999 until 28 February 2002. Legally, those coins and banknotes were considered non-decimal sub-divisions of the euro. When the Iraqi Swiss dinar ceased to be legal tender in Iraq, it still circulated in the northern Kurdish regions, and despitelacking government backing, it had a stable market value for more than a decade. This example is often cited todemonstrate that the value of a currency is not derived purely from its legal status (but this currency would not be legaltender).This is also true of the paper money issued by the Confederate States of America during the American Civil War. TheConfederate currency became worthless by its own terms after the war, since it could only be redeemed a stated number of years after a peace treaty was signed between the Confederacy and the United States (which never happened, as theConfederacy was defeated and dissolved).Demonetisation is currently prohibited in the United States and the Coinage Act of 1965 applies to all US coins andcurrency regardless of age. The closest historical equivalent in the US, other than Confederate money, was from 1933 to1974, when the government banned most private ownership of gold bullion, including gold coins held for non-numismaticpurposes. Now, however, even surviving pre-1933 gold coins are legal tender under the 1964 act.Banknotes and coins may be withdrawn from circulation, but remain legal tender. United States banknotes issued at any date remain legal tender even after they are withdrawn from circulation. Canadian 1- and 2-dollar bills remain legal tendereven if they have been withdrawn and replaced by coins, but Canadian $1,000 bills remain legal tender even if they areremoved from circulation as they arrive at a bank. However, Bank of England notes that are withdrawn from circulationgenerally cease to be legal tender but remain redeemable for current currency at the Bank of England itself or by post. Allpaper and polymer issues of New Zealand banknotes issued from 1967 onwards (and 1- and 2-dollar notes until 1993) arestill legal tender; however, 1- and 2-cent coins are no longer used in Australia and New Zealand. A cashless society describes an economic state whereby financial transactions are not conducted with money in the form of physical banknotes or coins, but rather through the transfer of digital information (usually an electronic representation of money) between the transacting parties.
[8]
Cashless societies have existed, based on barter and other methods of exchange,and cashless transactions have also become possible using digital currencies such as bitcoin. However this articlediscusses and focuses on the term "cashless society" in the sense of a move towards, and implications of, a society wherecash is replaced by its digital equivalent - in other words, legal tender (money) exists, is recorded, and is exchanged only inelectronic digital form.Sometimes currency issues such as commemorative coins or transfer bills may be issued that are not intended for publiccirculation but are nonetheless legal tender. An example of such currency is Maundy money. Some currency issuers,particularly the Scottish banks, issue special commemorative banknotes which are intended for ordinary circulation. As well, some standard coins are minted on higher-quality dies as 'uncirculated' versions of the coin, for collectors topurchase at a premium; these coins are nevertheless legal tender. Some countries issue precious-metal coins which have acurrency value indicated on them which is far below the value of the metal the coin contains: these coins are known as"non-circulating legal tender" or "NCLT".
Withdrawal from circulationCashless society
Commemorative issues
