GouOd NeWz: AwWwZ: Promissory note From Wikipedia, the free encyclopedia Jump to: navigation, search A 1926 Promissory Note from the Imperial Bank of India, Rangoon, Burma for 20,000 Rupees plus interest A promissory note is a legal instrument (more particularly, a financial instrument), in which one party (the maker or issuer) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms. If the promissory note is unconditional and readily salable, it is called a negotiable instrument.[1] Referred to as a note payable in accounting (as distinguished from accounts payable), or commonly as just a note, it is internationally defined by the Convention providing a uniform law for bills of exchange and promissory notes, although regional variations exist. Bank note is frequently referred to as a promissory note: a promissory note made by a bank and payable to bearer on demand. Mortgage notes are another prominent example. Contents [hide] • 1 Overview o 1.1 International law o 1.2 United States law o 1.3 British law • 2 History • 3 Difference from IOU • 4 Difference from loan contract • 5 Negotiability • 6 See also • 7 References Overview[edit] Promissory notes are a common financial instrument in many jurisdictions, employed principally for short time financing of companies. Often, the seller or provider of a service is not paid upfront by the buyer (usually, another company), but within period the length of which has been agreed upon by both the seller and the buyer. The reasons for this may vary; historically, many companies used to balance their books and execute payments and debts at the end of each fiscal month; any product bought before that time would be paid only then. Depending on the jurisdiction, this deferred payment period can be regulated by law; in countries like France, Italy or Spain, it usually ranges between 30 to 90 days after the purchase.[2] When a company engages in many of such transactions, for instance by having provided services to many customers all of whom then deferred their payment, it is possible that the company may be owed enough money that its own liquidity position (i.e., the amount of cash it holds) is hampered, and finds itself unable to honour their own debts, despite the fact that by the books, the company remains solvent. In those cases, the company has the option of asking the bank for a short term loan, or using any other such short term financial arrangements to avoid insolvency. However, in jurisdictions where promissory notes are commonplace, the company (called the payee or lender) can ask one of its debtors (called the maker, borrower or payor) to accept a promissory note, whereby the maker signs a legally binding agreement to honour the amount established in the promissory note (usually, part or all its debt) within the agreed period of time.[3] The lender can then take the promissory note to a financial institution (usually a bank, albeit this could also be a private person, or another company), that will exchange the promissory note for cash; usually, the promissory note is cashed in for the amount established in the promissory note, less a small discount. Once the promissory note reaches its maturity date, its current holder (the bank) can execute it over the emitter of the note (the debtor), who would have to pay the bank the amount promised in the note. If the maker fails to pay, however, the bank retains the right to go to the company that cashed the promissory note in, and demand payment. In the case of unsecured promissory notes, the lender accepts the promissory note based solely on the makers ability to repay; if the maker fails to pay, the lender must honour the debt to the bank. In the case of a secured promissory note, the lender accepts the promissory note based on the makers ability to repay, but the note is secured by a thing of value; if the maker fails to pay and the bank reclaims payment, the lender has the right to execute the security.[4] Thus, promissory notes can work as a form of private money. In the past, particularly during the 19th century, their widespread and unregulated use was a source of great risk for banks and private financiers, who would often face the insolvency of both debtors, or simply be scammed by both. The terms of a note usually include the principal amount, the interest rate if any, the parties, the date, the terms of repayment (which could include interest) and the maturity date. Sometimes, provisions are included concerning the payees rights in the event of a default, which may include foreclosure of the makers assets. Demand promissory notes are notes that do not carry a specific maturity date, but are due on demand of the lender. Usually the lender will only give the borrower a few days notice before the payment is due. For loans between individuals, writing and signing a promissory note are often instrumental for tax and record keeping. A promissory note alone is typically unsecured,[5] but these may be used in combination with security agreements such as mortgage, in which case they are called mortgage notes. International law[edit] Definition and usage of promissory notes are internationally established by the Convention providing a uniform law for bills of exchange and promissory notes, signed in Geneva in 1930.[6] Article 75 of the treaty stated that a promissory note shall contain: • the term promissory note inserted in the body of the instrument and expressed in the language employed in drawing up the instrument • an unconditional promise to pay a determinate sum of money; • a statement of the time of payment; • a statement of the place where payment is to be made; • the name of the person to whom or to whose order payment is to be made; • a statement of the date and of the place where the promissory note is issued; • the signature of the person who issues the instrument (maker). United States law[edit] A promissory note issued by the Second Bank of the United States, December 15, 1840, for the amount of $1,000 In the United States, a promissory note that meets certain conditions is a negotiable instrument regulated by article 3 of the Uniform Commercial Code. Negotiable promissory notes called mortgage notes are used extensively in combination with mortgages in the financing of real estate transactions. One prominent example is the Fannie Mae model standard form contract Multistate Fixed-Rate Note 3200, which is publicly available.[7] Promissory notes, or commercial papers, are also issued to provide capital to businesses. However, Promissory Notes act as a source of Finance to the companys creditors. The various State law enactments of the Uniform Commercial Code define what is and what is not a promissory note, in section 3-104(d): “ § 3-104. NEGOTIABLE INSTRUMENT. ... (d) A promise or order other than a check is not an instrument if, at the time it is issued or first comes into possession of a holder, it contains a conspicuous statement, however expressed, to the effect that the promise or order is not negotiable or is not an instrument governed by this Article. ” Thus, a writing containing such a disclaimer removes such a writing from the definition of negotiable instrument, instead simply memorializing a contract. British law[edit] “ § 83. BILLS OF EXCHANGE ACT 1882. Part IV.[8] ... Promissory note defined (1)A promissory note is an unconditional promise in writing made by one person to another signed by the maker, engaging to pay, on demand or at a fixed or determinable future time, a sum certain in money, to, or to the order of, a specified person or to bearer. (2)An instrument in the form of a note payable to maker’s order is not a note within the meaning of this section unless and until it is indorsed by the maker. (3)A note is not invalid by reason only that it contains also a pledge of collateral security with authority to sell or dispose thereof. (4)A note which is, or on the face of it purports to be, both made and payable within the British Islands is an inland note. Any other note is a foreign note. ” History[edit] Historically, promissory notes have acted as a form of privately issued currency. Flying cash or feiqian was a promissory note used during the Tang dynasty (618 – 907). Flying cash was regularly used by Chinese tea merchants, and could be exchanged for hard currency at provincial capitals.[9] According to tradition, in 1325 a promissory note was signed in Milan. Theres constance of promissory notes being issued in 1384 between Genova and Barcelona, although the letters themselves are lost. The same happens for the ones issued in Valencia in 1371 by Bernat de Codinachs for Manuel dEntença, a merchant from Huesca (then part of the Crown of Aragon), amounting a total of 100 florins.[10] In all these cases, the promissory notes were used as a rudimentary system of paper-money, for the amounts issued could not be easily transported in metal coins between the cities involved. Ginaldo Giovanni Battista Strozzi issued an early form of promissory note in Medina del Campo (Spain), against the city of Besançon in 1553.[11] However, there exists notice of promissory notes being in used in the Mediterranean commerce well before that date. Difference from IOU[edit] Promissory notes differ from IOUs in that they contain a specific promise to pay along with the steps and timeline for repayment as well as consequences if repayment fails.[12] IOUs only acknowledging that a debt exists.[13][14] In common speech, other terms, such as loan, loan agreement, and loan contract may be used interchangeably with promissory note but these terms do not have the same legal meaning.[citation needed] Difference from loan contract[edit] A promissory note is very similar to a loan - each is a legally binding contract to unconditionally repay a specified amount within a defined time frame - but a promissory note is generally less detailed and rigid than a loan contract.[15] For one thing, loan agreements often require repayment in installments, while promissory notes typically do not. Furthermore, a loan agreement usually includes the terms for recourse in the case of default, such as establishing the right to foreclose, while a promissory note does not. Also, while a loan agreement requires signatures from both the borrower and the lender, a promissory note only requires the signature of the borrower.[16] Negotiability[edit] Negotiable instruments are unconditional and impose few to no duties on the issuer or payee other than payment. In the United States, whether a promissory note is a negotiable instrument can have significant legal impacts, as only negotiable instruments are subject to Article 3 of the Uniform Commercial Code and the application of the holder in due course rule.[1] The negotiability of mortgage notes has been debated, particularly due to the obligations and baggage associated with mortgages; however, in mortgage notes are often determined to be negotiable instruments.[1] In the United States, the Non-Negotiable Long Form Promissory Note is not required.[17] Production and distribution[edit] A commercial bank that maintains a reserve account with the Federal Reserve can obtain notes from the Federal Reserve Bank in its district whenever it wishes. The bank must pay the face value of the notes by debiting (drawing down) its reserve account. Smaller banks without a reserve account at the Federal Reserve can maintain their reserve accounts at larger correspondent banks which themselves maintain reserve accounts with the Federal Reserve.[8] Federal Reserve Notes are printed by the Bureau of Engraving and Printing (BEP), a bureau of the Department of the Treasury.[9] When Federal Reserve Banks require additional notes for circulation, they must post collateral in the form of direct federal obligations, private bank obligations, or assets purchased through open market operations.[10] If the notes are newly printed, they also pay the BEP for the cost of printing (about 4¢ per note). This differs from the issue of coins, which are purchased for their face value.[8] A Federal Reserve Bank can retire notes that return from circulation by exchanging them for collateral that the bank posted for an earlier issue. Retired notes in good condition are held in the banks vault for future issues.[11] Notes in poor condition are destroyed[12] and replacements are ordered from the BEP. The Federal Reserve shreds 7,000 tons of worn out currency each year.[13] Federal Reserve notes, on average, remain in circulation for the following periods of time:[14] Nicknames[edit] U.S. paper currency has had many nicknames and slang terms. The notes themselves are generally referred to as bills (as in five-dollar bill) and any combination of U.S. notes as bucks (as in fifty bucks), or, much less commonly, bones or beans. Notes can be referred to by the first or last name of the person on the portrait (George for One Dollar,[18] or even more popularly, Benjamins for $100 notes). See tables below for nicknames for individual denomination • Greenbacks, any amount in any denomination of Federal Reserve Note (from the green ink used on the back). The Demand Notes issued in 1861 had green-inked backs, and the Federal Reserve Note of 1914 copied this pattern. • dead presidents, any amount in any denomination of Federal Reserve Note (from the portrait of a U.S. president on most denominations). • Toms for the picture of Thomas Jefferson on the two-dollar bill. • fin, finif (from the Yiddish word for five), or finski is a slang term for a five-dollar bill. • sawbuck is a slang term for a ten-dollar bill, from the image of the Roman numeral X. • double sawbuck is slang term for a twenty-dollar bill, from the image of the Roman numeral XX, and in some cases can be used to denote a pair of ten-dollar bills, which would be double sawbucks, depending on the situation and type and amount of currency on hand. • One hundred dollar bills are sometimes called Benjamins (in reference to their portrait of Benjamin Franklin) or C-Notes (the letter C is the Roman numeral 100). • One thousand dollars ($1000) can be referenced as Large, K (short for kilo), Grand or Stack, and as a G (short for grand). • The popularity of the Saturday Night Live skit Lazy Sunday has led to $10 notes sometimes being referred to as Hamiltons. • In Raymond Chandlers novel, The Long Goodbye, the protagonist Marlowe refers to a five thousand dollar bill as a portrait of Madison, due to the president portrayed on the bill being James Madison. Many more slang terms refer to money in general (green stamps, moolah, paper, bread, dough, do-re-mi, freight, loot, cheese, cake, stacks, greenmail, jack, rabbit, cabbage, pie, cheddar, scrilla, scratch, etc.).[citation needed] Criticisms[edit] This section needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (May 2008) Security[edit] Despite the relatively late addition of color and other anti-counterfeiting features to U.S. currency, critics[who?] hold that it is still a straightforward matter to counterfeit these bills. They point out that the ability to reproduce color images is well within the capabilities of modern color printers, most of which are affordable to many consumers. These critics suggest that the Federal Reserve should incorporate holographic features, as are used in most other major currencies, such as the pound sterling, Canadian dollar and euro banknotes, which are more difficult and expensive to forge. Another robust technology, the polymer banknote, has been developed for the Australian dollar and adopted for the New Zealand dollar, Romanian leu, Papua New Guinea kina, Canadian dollar, and other circulating, as well as commemorative, banknotes of a number of other countries. Polymer banknotes are a deterrent to the counterfeiter, as they are much more difficult and time consuming to reproduce. They are said to be more secure, cleaner and more durable than paper notes.[19] One major issue with implementing these or any new counterfeiting countermeasures, however, is that (other than under Executive Order 6102) the United States has never demonetized or required a mandatory exchange of existing currency. Consequently would-be counterfeiters can easily circumvent any new security features simply by counterfeiting older designs. U.S. currency does, however, bear several anti-counterfeiting features. Two of the most critical anti-counterfeiting features of U.S. currency are the paper and the ink. The exact composition of the paper is classified, as is the formula for the ink. The ink and paper combine to create a distinct texture, particularly as the currency is circulated. The paper and the ink alone have no effect on the value of the dollar until post print. These characteristics can be hard to duplicate without the proper equipment and materials. Furthermore, recent redesigns of the $5, $10, $20, and $50 notes have added EURion constellation patterns which can be used by scanning software to recognize banknotes and refuse to scan them. The differing sizes of other nations banknotes are a security feature that eliminates one form of counterfeiting to which U.S. currency is prone: Counterfeiters can simply bleach the ink off a low-denomination note, such as a $1 or $5 bill, and reprint it as a higher-value note, such as a $100 bill. To counter this, the U.S. government has included in all $5 and higher denominated notes since the 1990 series a vertical laminate strip imprinted with denomination information, which under ultraviolet light fluoresces a different color for each denomination ($5 note: blue; $10 note: orange; $20 note: green; $50 note: yellow; $100 note: red).[20] According to the central banks, the number of counterfeited bank notes seized annually is about 10 in one million of real bank notes for the Swiss franc, of 50 in one million for the Euro, of 100 in one million for United States dollar and of 300 in one million for Pound sterling.[21] Differentiation[edit] Critics, such as the American Council of the Blind, note that U.S. bills are relatively hard to tell apart: they use very similar designs, they are printed in the same colors (until the 2003 banknotes, in which a faint secondary color was added), and they are all the same size. The American Council of the Blind has argued[22] that American paper currency design should use increasing sizes according to value and/or raised or indented features to make the currency more usable by the vision-impaired, since the denominations cannot currently be distinguished from one another non-visually. Use of Braille codes on currency is not considered a desirable solution because (1) these markings would only be useful to people who know how to read Braille, and (2) one Braille symbol can become confused with another if even one bump is rubbed off. Though some blind individuals say that they have no problems keeping track of their currency because they fold their bills in different ways or keep them in different places in their wallets, they nevertheless must rely on sighted people or currency-reading machines to determine the value of each bill before filing it away using the system of their choice. This means that no matter how organized they are, blind people still have to trust sighted people or machines each time they receive US banknotes. By contrast, other major currencies, such as the pound sterling and euro, feature notes of differing sizes: the size of the note increases with the denomination and different denominations are printed in different, contrasting colors. This is useful not only for the vision-impaired; they nearly eliminate the risk that, for example, someone might fail to notice a high-value note among low-value ones. Multiple currency sizes were considered for U.S. currency, but makers of vending machines and change machines successfully argued that implementing such a wide range of sizes would greatly increase the cost and complexity of such machines. Similar arguments were unsuccessfully made in Europe prior to the introduction of multiple note sizes. Alongside the contrasting colors and increasing sizes, many other countries currencies contain tactile features missing from U.S. banknotes to assist the blind. For example, Canadian banknotes have a series of raised dots (not Braille) in the upper right corner to indicate denomination. Mexican peso banknotes also have raised patterns of dashed lines. The Indian Rupee has raised patterns of different shapes printed for various denominations on the left of the watermark window (20: vertical rectangle, 50: square, 100: triangle, 500: circle, 1,000: diamond). Suit by the blind over U.S. banknote design[edit] Ruling on a lawsuit filed in 2002 (American Council of the Blind v. Paulson), on November 28, 2006, U.S. District Judge James Robertson ruled that the American bills gave an undue burden to the blind and denied them meaningful access to the U.S. currency system. In his ruling, Robertson noted that the United States was the only nation out of 180 issuing paper currency that printed bills that were identical in size and color in all their denominations and that the successful use of such features as varying sizes, raised lettering and tiny perforations used by other nations is evidence that the ordered changes are feasible.[23] Robertson accepted the plaintiffs argument that current practice violates Section 504 of the Rehabilitation Act.[24] The Treasury is appealing the decision. The judge ordered the Treasury Department to begin working on a redesign within 30 days.[22][25][26][27] The plaintiffs attorney was quoted as saying Its just frankly unfair that blind people should have to rely on the good faith of people they have never met in knowing whether theyve been given the correct change.[citation needed] Government attorneys estimated that the cost of such a change ranges from $75 million in equipment upgrades and $9 million annual expenses for punching holes in bills to $178 million in one-time charges and $50 million annual expenses for printing bills of varying sizes.[28] On May 20, 2008, in a 2-to-1 decision, the United States Court of Appeals for the District of Columbia Circuit upheld the earlier ruling, pointing out that the cost estimates were inflated and that the burdens on blind and visually impaired currency users had not been adequately addressed.[29] As a result of the courts injunction, the Bureau of Engraving and Printing is planning to implement a raised tactile feature in the next redesign of each note, except the $1 bill (which is by law not allowed to be redesigned[30][31]), though the version of the $100 bill already is in progress. It also plans larger, higher-contrast numerals, more color differences, and distribution of currency readers to assist the visually impaired during the transition period.[32] The Bureau received a comprehensive study on accessibility options in July 2009, and solicited public comments from May to August 2010.[33] Fiat currency[edit] Former Congressman Ron Paul, and libertarians influenced by Austrian economics, criticize Federal Reserve Notes because they are a form of fiat currency and are not backed by tangible assets such as gold or silver. Such critics argue that Federal Reserve Notes can lose value easily and point to the currencys inflation rates as proof of this claim.[34] However, the 2% inflation rate is in fact the stated goal of the Federal Reserve, as it maximizes both employment and price stability against adverse economic conditions.[35] Constitutionality[edit] See also: Legal tender cases Critics, including former U.S. Congressman Ron Paul,[36] allege that according to the U.S. Constitution, Article I, Section 8, that only the U.S. Congress has the ability To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;[37] and, according to section 10, that No State shall... make any Thing but gold and silver Coin a Tender in Payment of Debts;[37] and thus Federal Reserve banknotes are not legal tender, as they were not issued by Congress, states have no authority to recognize anything but gold or silver (including federal reserve notes), and the Federal Reserve does not have the authority to print or create money.[38] Though the printing of money is physically done by the Department of the Treasury, that agency is told by the Federal Reserve how much to print. The Federal Reserve also does regulate the value of the U.S. dollar through its various operations, as authorized by Congress. Others contend that, since Congress passed the Federal Reserve Act, the Federal Reserve is constitutional as it was created by Congress and Congress retains oversight over the Federal Reserve System.[39] Congress retains the ability to delegate some of its legislative powers to other branches of the government or agencies based on the U.S. Supreme Courts interpretation of the nondelegation doctrine.[citation needed] Those opposed to current Federal Reserve argumentation generally disagree[citation needed] the established U.S. Supreme Court precedent McCulloch v. Maryland, which ruled constitutional the Second Bank of the United States, forerunner to the Federal Reserve applies to the Federal Reserve as structured today. McCulloch v. Maryland explicitly states that Congressional delegation of these powers to chartered entities is valid under the Necessary and Proper Clause. Design regulations[edit] There are a few regulations to which the U.S. Treasury must adhere when redesigning banknotes. The state motto In God We Trust must appear on every banknote.[40] The bill requiring this, H.R. 619,[41] was introduced by Representative Charles Edward Bennett of Florida. The inclusion of the motto was meant to serve as a frequent claim that the country was founded upon faith in God as well as spiritual values during the era of McCarthyism. President Dwight D. Eisenhower signed this bill in 1955, but it was not until 1957 that banknotes bearing this motto were first circulated.[42][43] The portraits appearing on the U.S. currency can feature only deceased individuals, whose names should be included below each of the portraits.[40] Since the standardization of the bills in 1928, the Department of the Treasury has chosen to feature the same portraits on the bills. These portraits were decided upon in 1929 by a committee appointed by the Treasury. Originally, the committee had decided to feature U.S. presidents because they were more familiar to the public than other potential candidates. The Treasury altered this decision, however, to include three statesmen who were also well-known to the public: Alexander Hamilton (the first Secretary of the Treasury who appears on the $10 bill), Salmon P. Chase (the Secretary of the Treasury during the American Civil War who appeared on the now uncirculated $10,000 bill), and Benjamin Franklin (a signer of the Declaration of Independence, who appears on the $100 bill).[44] In 2001, the Legal Tender Modernization Act was proposed which would prohibit any redesign of the $1 bill.[45] This act would have superseded the Federal Reserve Act (Section 16, paragraph 8) which gives the Treasury permission to redesign any banknote to prevent counterfeiting.[46] More recently, the Omnibus Appropriations Act (2009) has stated that none of the funds set aside for either the Treasury or the Bureau of Engraving and Printing may be used to redesign the $1 bill.[47] This is because any change would affect vending machines and the risk of counterfeiting is low for this small bill.[48] International Standard Book Number From Wikipedia, the free encyclopedia Jump to: navigation, search For reader help on ISBNs, see Help:ISBN. International Standard Book Number A 13-digit ISBN, 978-3-16-148410-0, as represented by an EAN-13 bar code Acronym ISBN Introduced 1970 Managing organisation International ISBN Agency Number of digits 13 (formerly 10) Check digit Weighted sum Example 978-3-16-148410-0 Website isbn-international.org The International Standard Book Number (ISBN) is a unique[1][2] numeric commercial book identifier based upon the 9-digit Standard Book Numbering (SBN) code created by Gordon Foster, Emeritus Professor of Statistics at Trinity College, Dublin,[3] for the booksellers and stationers WHSmith and others in 1965.[4] The ISBN configuration of recognition was generated in 1967 by David Whitaker and Emery Koltay (who grew to be Director of the U.S. ISBN agency).[5][6] [7][8] The 10-digit ISBN format was developed by the International Organization for Standardization (ISO) and was published in 1970 as international standard ISO 2108.[4] However, the 9-digit SBN code was used in the United Kingdom until 1974. An SBN may be converted to an ISBN by prefixing the digit 0. ISO has appointed the International ISBN Agency as the registration authority for ISBN worldwide and the ISBN Standard is developed under the control of ISO Technical Committee 46/Subcommittee 9 TC 46/SC 9. The ISO on-line facility only refers back to 1978.[9] Since 1 January 2007, ISBNs have contained 13 digits, a format that is compatible with Bookland European Article Number EAN-13s.[10] Occasionally, a book may appear without a printed ISBN if it is printed privately or the author does not follow the usual ISBN procedure; however, this can be rectified later.[11] Another identifier, the International Standard Serial Number (ISSN), identifies periodical publications such as magazines. Motto: In God we trust (official)[1][2][3] E pluribus unum (Latin) (traditional de facto) Out of many, one Annuit cœptis (Latin) (traditional) She/he/it approves (has approved) of the undertakings Novus ordo seclorum (Latin) (traditional) New order of the ages Demand Note From Wikipedia, the free encyclopedia (Redirected from Demand note) Jump to: navigation, search This article is about the Demand Notes issued by the U.S. government. For demand note referring to any promissory note that is payable on demand, see promissory note. Top row: The distinctive green ink used on the backs of Demand Notes gave rise to the term greenbacks Bottom row: Prominent design elements used on the front of $5 and $20 Demand Notes (located respectively under their denomination); pictured in the middle is the front of a $10 Demand Note with prominent design elements listed A Demand Note is a type of United States paper money that was issued between August 1861 and April 1862 during the American Civil War in denominations of 5, 10, and 20 US$. Demand Notes were the first type of paper money issued by the United States in the sense that they were the first in the series of emissions which has continuously achieved wide circulation down to the present day. The U.S. government placed the Demand Notes into circulation by using them to pay expenses incurred during the civil war including the salaries of its workers and military personnel. Because of the distinctive green ink on their reverse, and because state-chartered bank and Confederate notes of the day typically had blank reverse, the Demand Notes were nicknamed greenbacks, a name later inherited by Legal Tender and Federal Reserve Notes. The obverse of the Demand Notes contained familiar elements such as the images of a bald eagle, Abraham Lincoln, and Alexander Hamilton, though the portraits used on Demand Notes are different from the ones seen on U.S. currency today. When Demand Notes were discontinued, their successors, the Legal Tender Notes, could not be used to pay import duties, a large part of the U.S. federal tax base at the time, and thus Demand Notes took precedence. As a result, most Demand Notes were redeemed, though the few remaining Demand Notes are the oldest valid currency in the United States today.
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