Comments on: Paying Debts with Legal Tender

By: 54ndm4n

54ndm4n — Wed, 08 Jun 2011 17:28:55 +0000

If the law states, “United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues.”

Then how come what is printed on our money from the Federal Reserve say, “THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE”?

WHICH IS IT???

And what about the law that says if they refuse payment, you are not obligated to pay anything further?

By: Ryan

Ryan — Mon, 11 Oct 2010 14:28:15 +0000

JotaTe, I wouldn’t make the assumption that your tax bill is canceled. In fact, I would go back and make sure that they take your money, otherwise you may find yourself due for penalties or other problems. The thing is, taxes and tax obligations don’t just go away, and unless you have proof they refused your payment, they will likely mark your situation as overdue or “failure to pay,” which could expose you to penalties, or worse – even though you made an honest attempt to pay your taxes.

I recommend going back and paying your taxes, and insisting they take the money. If they refuse, ask them to show a policy that states they will not accept cash or coins as payment for taxes. If they continue to refuse, then request to speak with a supervisor and also request they give you a written and signed statement on official letterhead stating they refused to accept your payment for taxes. Also request they notarize the signed letter (the county tax office should have a notary public available). Then, get a lawyer, just in case.

By: JotaTe

JotaTe — Sun, 10 Oct 2010 22:47:38 +0000

At 3:45 p.m. last Friday, October 8, 2010, I tried to pay my Coconino County property tax in the form of 500 $1 bills, 500 $1 coins and $13.44 in pennies. The money was in a sealed bank bag and could not be seen. Nancy, the clerk at the Tax Assessor’s office assumed I was paying in all pennies because I had paid a different tax of $5.72 with pennies. She refused to accept my bag of money. She contacted her supervisor who apparently transferred the matter to Cheri Kiefer, Chief Deputy Treasurer, who also refused to accept my bag of money claiming they did not have the time to count all of my pennies. I asked her why she thought it was all pennies. She did not have a good answer. However, there were four women standing around doing absolutely nothing. Anyone could have counted the money I tendered in little time. As I understand it since I tendered payment in US legal tender and it was not accepted my tax bill is now canceled. Is that true? If so which law do I need to be aware of to back this up later.

By: bratz

bratz — Sat, 21 Aug 2010 17:09:02 +0000

U.C.C. – ARTICLE 3 – NEGOTIABLE INSTRUMENTS
..PART 6. DISCHARGE AND PAYMENT
§ 3-603. TENDER OF PAYMENT.

* (a) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by principles of law applicable to tender of payment under a simple contract.
* (b) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused, there is discharge, to the extent of the amount of the tender, of the obligation of an indorser or accommodation party having a right of recourse with respect to the obligation to which the tender relates.
* (c) If tender of payment of an amount due on an instrument is made to a person entitled to enforce the instrument, the obligation of the obligor to pay interest after the due date on the amount tendered is discharged. If presentment is required with respect to an instrument and the obligor is able and ready to pay on the due date at every place of payment stated in the instrument, the obligor is deemed to have made tender of payment on the due date to the person entitled to enforce the instrument.

By: Ryan

Ryan — Thu, 25 Mar 2010 13:47:29 +0000

David, if you mean some sort of payment plan or other arrangement, then no, not that I am aware of. Many creditors will work with borrowers by coming up with arrangements such as a payment plan, reduced minimum payments, or reduced interest rates, but they are not required to do so. Most debts are legal contracts and lenders are not normally required to modify those contracts to favor borrowers (in fact, many contracts have stipulations that protect the lenders, such as late payments, penalties, fees, interest rate hikes, etc.).

If, with your question, you are asking if a debt can be canceled if the lender refuses a legal payment, again, I don’t think so. Most lenders have a list of payment types they accept, such as credit cards, checks, bank drafts, money transfers, etc. Most credit card companies don’t accept payments like cash or traveler’s checks, so I don’t think you can have your credit card debt canceled if they refuse payment for something like that.

By: David Sepulveda

David Sepulveda — Thu, 25 Mar 2010 03:26:41 +0000

Is there a Federal Law that states a debt must be canceled if reasonable payments attempts are refused by the Creditor?

By: SKP

SKP — Sun, 31 Jan 2010 04:35:19 +0000

Can a state refuse to take cash? In MA the state refuses to take any cash it requires draft or check or credit card. How can this be legal?

By: j w more

j w more — Mon, 19 Oct 2009 18:03:33 +0000

I have one question left unanswered in this thread. What happens to the debt if the collecting party refuses the legal tender? In other words is the debt considered “Paid in Full” or is the debt considered still owed?