Mississippi Legal Tender Law

(c) where payment of an amount due in respect of a security is made to a person entitled to enforce the certificate, the obligation of the debtor to pay interest on the amount offered after the due date is fulfilled. Where a document requires production and the debtor is able and willing to pay on the due date of any payment agent specified in the instrument, the debtor shall be deemed to have made an offer to pay to the person entitled to enforcement on the due date. In July 2020, the Mississippi State Senator. Chad McMahan warned companies in his state that refused to handle cash during the COVID-19 pandemic (for fear of transmission of the virus through superficial contact) that they were breaking the law by refusing to accept payments in legal tender: But Mississippi has no such requirement on its books, which McMahan apparently acknowledged when he later stated: “To meet the needs and demands of Mississippians — the average person who works here, goes to the supermarket and lives their life — I want every business in Mississippi to have a way to take legal tender money.” DeCosta-Klipa, Nik. Maura Healey reminds businesses that it remains illegal to refuse cash for fear of coronavirus. Boston.com. April 1, 2020. Northern Mississippi Senator Chad McMahan caused a stir on Facebook when he said that if a Mississippi store doesn`t accept cash as payment, the customer can legally leave. (b) where payment of an obligation to pay a security is made to a person entitled to enforce the security and the offer is rejected, the obligation of a creditor or an accommodating party entitled to exercise a remedy with respect to the obligation to which the offer relates is fulfilled to the extent of the bid. “So there`s no Mississippi code, and I want people to know that I`ve started drafting laws that require all businesses in Mississippi to accept legal tender as payment,” McMahan said.

As states legalize marijuana, more and more businesses and policymakers are facing a banking problem. Q: I thought the U.S. currency was legal tender for all debts. Some businesses or government agencies say they only accept checks, money orders or credit cards as payment, and others only accept bills worth $20 or less. Isn`t that illegal? (a) where the tender for payment of an obligation to pay for an instrument is made to a person entitled to enforce the security, the effect of the bid shall be determined in accordance with the principles of law applicable to the offer to pay under a simple contract; A: The relevant part of the law that applies to your question is the Currency Act of 1965, specifically Section 31 of the United States Code. 5103 entitled “Legal tender,” which states: “The coins and coins of the United States (including Federal Reserve notes and circulation notes of Federal Reserve banks and national banks) are legal tender for all debts, public duties, taxes, and duties.” However, McMahan was wrong in a legal sense: No federal law requires all businesses in the United States to accept currency or coins as payment for goods and services. The Department of Finance responds to this question of accepting legal tender on its website as follows: “If, as a business owner, you have refused to accept money that is legal tender and services are provided, then that debt will be paid unless you have only posted electronic means,” he said. This law means that all U.S. funds, as noted above, constitute a valid and legal offer of debt when offered to a creditor.

However, there is no federal law requiring a private company, person, or organization to accept currency or coins as payment for goods and/or services. Private companies may develop their own policies on whether or not to accept cash, unless a state law provides otherwise. For example, a bus route may prohibit the payment of fares in pennies or dollar bills. In addition, movie theatres, convenience stores and gas stations may refuse to accept large denominations (usually bills over $20) as a guideline. The designation of coins and/or currencies as “legal tender” does not mean that all merchants must accept this method of payment for all transactions. In short, if a debt has been incurred by one party to another and the parties have agreed that money should be the medium of exchange, then legal tender must be accepted when offered to repay that debt. Otherwise, the seller can lock the medium of exchange to any medium of exchange: dollars, bananas, precious stones, feathers, whiskey, etc. You can also choose to accept cash payments only by other forms (e.g. credit/debit card, check, money order) and not by the currency itself. While 31 U.S.C.

5103, entitled “Legal tender,” states: “U.S. coins and currencies [including Federal Reserve notes and circulation notes of Federal Reserve banks and national banks] are legal tender for all debts, public charges, taxes, and duties,” according to the Federal Reserve`s own FAQs, there is “no federal law requiring a company, A private person or organization uses currency or coins to pay for goods. or services.” During the pandemic, the federal Centers for Disease Control and Prevention encouraged stores to use “contactless” payment methods such as apps to prevent transmission of COVID-19 to the surface. But the agency also found that the virus spreads primarily through the air, not by sticking to surfaces. Several people came to me about a problem in our state. Scott, thanks for the email. There is little data on how many businesses did not have cash during the pandemic or how long these policies lasted. Daily Update – Original coverage of government policy as well as the five best reads of the day on the Internet.

MAD Greens, a fast-casual salad chain based in Golden, Colorado, stopped accepting cash in April 2020 for health and logistical reasons, marketing director Peggy Littleton said in an email.

Comments are closed.