The Canadian Silver Maple Leaf is a silver bullion coin that is issued annually by the Government of Canada since 1988. It is produced by the Royal Canadian Mint .
95-497: The Silver Maple Leaf is legal tender . The face value is 5 Canadian dollars . The market value of the metal varies, depending on the spot price of silver . The standard version has a weight of 1 troy ounce (31.1 grams). The Silver Maple Leaf's obverse and reverse display, respectively, the profile of Charles III and the Canadian Maple Leaf . In 2014, new security features were introduced: radial lines and
190-522: A face value of 5 Canadian dollars , the Silver Maple Leaf has status as legal tender . It has also a market value that depends on the spot price of silver and that normally exceeds the nominal face value. With few exceptions and alike similar international bullion coins, the Silver Maple Leaf has a weight of 1 troy ounce (31.1 grams). The 99.99% silver content makes the coin among the finest official bullion coins worldwide. Samples of
285-422: A bank syndicates a loan. Loans can be turned into securities through the securitization process. In a securitization, a company sells a pool of assets to a securitization trust, and the securitization trust finances its purchase of the assets by selling securities to the market. For example, a trust may own a pool of home mortgages , and be financed by residential mortgage-backed securities . In this case,
380-539: A bank. However, Bank of England notes that are withdrawn from circulation generally cease to be legal tender but remain redeemable for current currency at the Bank of England itself or by post. All paper and polymer issues of New Zealand banknotes issued from 1967 onwards (and 1- and 2-dollar notes until 1993) are still legal tender; however, 1-, 2- and 5-cent coins are no longer used in New Zealand . A cashless society
475-454: A beneficiary who is to receive the money, the issuing bank of whom the applicant is a client, and the advising bank of whom the beneficiary is a client. Almost all letters of credit are irrevocable, i.e., cannot be amended or canceled without prior agreement of the beneficiary, the issuing bank and the confirming bank, if any. In executing a transaction, letters of credit incorporate functions common to giros and traveler's cheque . Typically,
570-479: A company, since its cost of refinancing depends on its creditworthiness . Bonds below Baa/BBB (Moody's/S&P) are considered junk or high-risk bonds. Their high risk of default (approximately 1.6 percent for Ba) is compensated by higher interest payments. Bad Debt is a loan that can not (partially or fully) be repaid by the debtor. The debtor is said to default on their debt. These types of debt are frequently repackaged and sold below face value. Buying junk bonds
665-408: A contract for the sale of goods, do not need to accept legal tender and may instead require payment using electronic methods, foreign currencies or any other legally recognized object of value. Coins and banknotes are usually defined as legal tender in many countries, but personal cheques , credit cards , and similar non-cash methods of payment are usually not. Some jurisdictions may include
760-630: A currency 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 . The Australian dollar , comprising notes and coins, is legal tender in Australia . Australian notes are legal tender by virtue of the Reserve Bank Act 1959 (Cth) s 36(1), without an amount limit. The Currency Act 1965 (Cth) similarly provides that Australian coins intended for general circulation are also legal tender, but only for
855-412: A fixed lifetime, usually a number of years ; with long-term bonds, lasting over 30 years, being less common. At the end of the bond's life the money should be repaid in full. Interest may be added to the end payment, or can be paid in regular installments (known as coupons ) during the life of the bond. A letter of credit or LC can also be the source of payment for a transaction, meaning that redeeming
950-459: A formal monetary agreement with the EU, unilaterally adopted the euro in 2002 as their de facto domestic currency to ensure monetary stability and to continue to avoid the high/hyper inflation seen in preceding decades: this means that the euro is not a legal tender there, however it is treated as such by the government and the people. Legal tender was enacted the first time for gold and silver coins in
1045-600: A micro-engraved laser mark. The Silver Maple Leaf is issued annually by the Government of Canada . Introduced in 1988 by the Royal Canadian Mint , there have been four subsequent standard editions and several special editions. The Silver Maple Leaf's obverse displayed the profile of Elizabeth II up until 2023. There have been three subsequent versions of the Queen's profile: Canadian coins released to
SECTION 10
#17327732356131140-524: A more direct sense, more bankruptcies also occurred due both to increased debt cost caused by deflation and the reduced demand. At the household level, debts can also have detrimental effects — particularly when households make spending decisions assuming income will increase, or remain stable, in years to come. When households take on credit based on this assumption, life events can easily change indebtedness into over-indebtedness. Such life events include unexpected unemployment, relationship break-up, leaving
1235-584: A number of other banks including the Bank of New Zealand , the Bank of New South Wales , the National Bank of New Zealand and the Colonial Bank of New Zealand were created by Acts of Parliament and authorized to issue bank-notes backed by gold, however these notes were not legal tender. The 1893 Bank Note Issue Act allowed the government to declare a bank's right to issue legal tender. This enabled
1330-447: A part of its overall corporate finance strategy. A term loan is the simplest form of corporate debt. It consists of an agreement to lend a fixed amount of money, called the principal sum or principal, for a fixed period of time, with this amount to be repaid by a certain date. In commercial loans interest , calculated as a percentage of the principal sum per year, will also have to be paid by that date, or may be paid periodically in
1425-457: A period of time; only Ireland continues to do so. Legally, those coins and banknotes were considered non-decimal sub-divisions of the euro. When the so-called "Swiss" dinar ceased to be legal tender in Iraq , it still circulated in the northern Kurdish regions. Despite lacking government backing, it had a stable market value for more than a decade. This is also true of the paper money issued by
1520-650: A person who has been helped by a second person is sometimes said to owe a "debt of gratitude" to the second person. The English term "debt" was first used in the late 13th century and comes by way of Old French from the Latin verb debere , "to owe; to have from someone else." The related term "debtor" was first used in English also in the early 13th century. Principal is the amount of money originally invested or loaned, on which basis interest and returns are calculated. There are three main ways repayment may be structured:
1615-414: A presentation folder. 1 oz. coin is enhanced with enamel-like paint and Micro-text "CANADA" privy mark. Reverse Proof finish. Packaged in a Black clamshell with black beauty box. Legal tender Legal tender is a form of money that courts of law are required to recognize as satisfactory payment for any monetary debt . Each jurisdiction determines what is legal tender, but essentially it
1710-420: A reference point for all other debt. There are deep, transparent, liquid, and open capital markets for Treasuries. Furthermore, Treasuries are issued in a wide variety of maturities, from one day to thirty years, which facilitates comparing the interest rates on other debt to a security of comparable maturity. In finance, the theoretical " risk-free interest rate " is often approximated by practitioners by using
1805-468: A repayment amount of 1.5 to 2.5 times the principle loan. Repayment periods are flexible; businesses can pay back the agreed-upon amount sooner, if possible, or later. In addition, business owners do not sell equity or relinquish control when using revenue-based financing. Lenders that provide revenue-based financing work more closely with businesses than bank lenders, but take a more hands-off approach than private equity investors . A syndicated loan
1900-775: A replacement for the Indian rupee for circulation exclusively outside the country with the Reserve Bank of India Amendment Act of 1 May 1959. This creation of a separate currency was an attempt to reduce the strain put on India's foreign reserves by gold smuggling. Kuwait and Bahrain eventually replaced the Gulf rupee with their own currencies (the Kuwaiti dinar and the Bahraini dinar ) after gaining independence from Britain in 1961 and 1965, respectively. On 6 June 1966, India devalued
1995-722: A series of Hawaii overprint notes as an emergency issue after the attack on Pearl Harbor. The intent of the overprints was to easily distinguish United States dollars captured by the Imperial Japanese Armed Forces in the event of an invasion of Hawaii (which never happened) and render the notes worthless via demonetisation. Demonetisation is currently prohibited in the United States, and the Coinage Act of 1965 applies to all US coins and currency regardless of age. The closest historical equivalent in
SECTION 20
#17327732356132090-402: A specific foreign currency as legal tender, at times as its exclusive legal tender or concurrently with its domestic currency. The term legal tender is from Middle 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 (to hold outward). Demonetization
2185-623: A tax of 10%, per annum, on "all bank notes issued or re-issued by any bank in the Commonwealth after the commencement of this Act, and not redeemed". These Acts effectively put an end to the issue of notes by the trading banks and the Queensland Treasury. The Reserve Bank Act 1959 expressly prohibits persons and states from issuing "a bill or note for the payment of money payable to bearer on demand and intended for circulation". In general, Canadian dollar banknotes issued by
2280-444: A thousand-guilder bill, you have to be able to state how you came by it and provide proof. They can still be used to pay taxes, but only until next week. The five-hundred notes will lapse at the same time. Gies & Co. still had some unaccounted-for thousand-guilder bills, which they used to pay their estimated taxes for the coming years, so everything seems to be above board. Piet Lieftinck 's measure of demonetizing 100-guilder notes
2375-426: A view to curb counterfeiting, tax evasion and the parallel economy . The Reserve Bank of India outlined a scheme for holders of such banknotes to either deposit them into their bank accounts for full, unlimited value, or to exchange the banknotes for new, subject to a cap. New Zealand has a complex history of legal tender. English law applied, as applicable to local circumstances, either from 6 January 1840 (when
2470-617: Is Maundy money . Some currency issuers, particularly the Scottish banks, issue special commemorative banknotes which are intended for ordinary circulation (though no Scottish banknotes nor notes from Northern Ireland are legal tender in the United Kingdom). As well, some standard coins are minted on higher-quality dies as uncirculated versions of the coin, for collectors to purchase at a premium; these coins are nevertheless legal tender. Some countries issue precious-metal coins which have
2565-526: Is a loan that is granted to companies that wish to borrow more money than any single lender is prepared to risk in a single loan. A syndicated loan is provided by a group of lenders and is structured, arranged, and administered by one or several commercial banks or investment banks known as arrangers. Loan syndication is a risk management tool that allows the lead banks underwriting the debt to reduce their risk and free up lending capacity. A company may also issue bonds , which are debt securities . Bonds have
2660-399: Is a means of using anticipated income and future purchasing power in the present before it has actually been earned. Commonly, people in industrialized nations use consumer debt to purchase houses, cars and other things too expensive to buy with cash on hand. People are likely to spend more and get into debt when they use credit cards as against cash to buy products and services. This
2755-533: Is a process whereby a new, large loan application is submitted in order to compensate for numerous outstanding loans. Some amongst those who are heavily indebted often resort to debt consolidation as a means to resolve their financial difficulties. Upon obtaining the borrowed loan, those within the receiving end are then generally enabled to have a greater cash flow, resulting from lowering monthly payments, if not reducing interest rates . However, this varies from every claimant, in that their own eligibility for such
2850-599: Is an economic state whereby financial transactions are not conducted with money in the form of physical banknotes or coins. Cashless societies have existed, based on barter and other methods of exchange. In modern usage, the term usually refers to financial transactions conducted by transfer of digital information (usually an electronic representation of money) between the transacting parties. Sometimes currency issues such as commemorative coins or transfer bills may be issued that are not intended for public circulation but are nonetheless legal tender. An example of such currency
2945-439: Is anything which when offered ("tendered") in payment of a debt extinguishes the debt. There is no obligation on the creditor to accept the tendered payment, but the act of tendering the payment in legal tender discharges the debt. It is generally only mandatory to recognize the payment of legal tender in the discharge of a monetary debt from a debtor to a creditor. Sellers offering to enter into contractual relationship, such as
Canadian Silver Maple Leaf - Misplaced Pages Continue
3040-612: Is at liberty to set the commercial terms upon which payment will take place before the contract for supply of the goods or services is entered into. If a provider of goods or services specifies other means of payment prior to the contract, then there is usually no obligation for legal tender to be accepted as payment. This is the case even when an existing debt is involved. However, refusal to accept legal tender in payment of an existing debt, where no other means of payment/settlement has been specified in advance, conceivably could have consequences in legal proceedings. Australia Post prohibits
3135-599: Is because biblically debt is seen as the responsibility of both the creditor and the debtor. Traditional Christian teaching holds that a lifestyle of debt should not be normative; the Emmanuel Association , a Methodist denomination in the conservative holiness movement , for example, teaches: "We are to refrain from entering into debt when we have no reasonable plan to pay. We are to be careful to meet all financial engagements promptly when due, if at all possible, remembering that we are to 'Provide things honest in
3230-426: Is considered paramount in determining the riskiness of an investment, under the notion that it becomes more risking under more debt. Governments issue debt to pay for ongoing expenses as well as major capital projects. Government debt may be issued by sovereign states as well as by local governments, sometimes known as municipalities. Debt issued by the government of the United States, called Treasuries , serves as
3325-423: Is considered secured if creditors have recourse to specific collateral . Collateral may include claims on tax receipts (in the case of a government), specific assets (in the case of a company) or a home (in the case of a consumer). Unsecured debt comprises financial obligations for which creditors do not have recourse to the assets of the borrower to satisfy their claims. Credit bureaus collect information about
3420-412: Is entirely dependent on their own overall circumstances; Should they meet specific requirements, being able to afford such, their requests are usually accepted; Should they fail the criteria, they're almost always swiftly rejected, regardless of their financial ability. Given the often monetary hardship of contenders, those providing these loans often charge at larger rates of interest than others; This
3515-498: Is generally subject to contractual terms regarding the amount and timing of repayments of principal and interest . Loans , bonds , notes, and mortgages are all types of debt. In financial accounting , debt is a type of financial transaction , as distinct from equity . The term can also be used metaphorically to cover moral obligations and other interactions not based on a monetary value. For example, in Western cultures,
3610-447: Is not repaid faster than it grows through interest. This effect may be termed usury , while the term "usury" in other contexts refers only to an excessive rate of interest, in excess of a reasonable profit for the risk accepted. In international legal thought, odious debt is debt that is incurred by a regime for purposes that do not serve the interest of the state. Such debts are thus considered by this doctrine to be personal debts of
3705-414: Is occasionally a matter of debate in the financial and institutional sectors, often ranging between analysts towards professors, generally concerning ethics involved in different areas. Companies also use debt in many ways for capital expenditures and other business investments produced in their assets , "leveraging" the return on their equity . This leverage , the proportion of debt to equity,
3800-659: Is often critiqued by its opponents, who claim that it is an unfair practice aimed at targeting those who are desperate and often holds arbitrary figures, although those in its defence claim it is a security measure aimed at ensuring its repayment obligations and must take precautions before offering large sums. Both arguments have resulted in greater debate amongst legislators in different nations, amidst demands for further regulation and more decreases in lending restrictions. Debt consolidation has also been an area of interest for loan sharks , leaving those heavily indebted vulnerable to extortionate rates. The idea behind debt consolidation
3895-533: Is packaged in semi-transparent tubes with a yellow lid bearing the RCM logo. Some special editions have tubes with an orange, red, blue, dark blue or grey lid. Each tube contains 25 coins. Furthermore, there exist boxes that contain 20 tubes each. The issue from the year 2000 was sold as an uncirculated bulk coin yet bears the Fireworks privy mark on it. It is re-listed in the special privy mark section below but
Canadian Silver Maple Leaf - Misplaced Pages Continue
3990-403: Is primarily because of the transparency effect and consumer's "pain of paying." The transparency effect refers to the idea that the further you are from cash (as with a credit card or other forms of payment), the less transparent it is and the less aware you are of how much you have spent. The less transparent or further away from cash the form of payment employed is, the less an individual feels
4085-428: Is restored as legal tender. Coins and banknotes may cease to be legal tender if new notes of the same currency replace them or if a new currency is introduced replacing the former one. Examples of this are: Thousand-guilder notes are being declared invalid. That'll be a blow to the black marketeers and others like them, but even more to people in hiding and anyone else with money that can't be accounted for. To turn in
4180-525: Is seen as a risky but potentially profitable investment. Bonds are debt securities , tradeable on a bond market . A country's regulatory structure determines what qualifies as a security. For example, in North America, each security is uniquely identified by a CUSIP for trading and settlement purposes. In contrast, loans are not securities and do not have CUSIPs (or the equivalent). Loans may be sold or acquired in certain circumstances, as when
4275-499: Is still essentially part of the standard bullion series. In 1999, many Silver Maple Leaf coins were issued with a privy mark to commemorate the 20th anniversary of the RCM Maple Leaf Program . In the following year, the coins featured a privy mark with fireworks and the number 2000. Another Silver Maple Leaf version was issued to commemorate the millennium. The coins were double-dated 1999 and 2000. Encapsulated in
4370-571: Is that many people, in particular those who are poor, have no access to affordable credit. Such debts can cause problems when they are not paid back according to expectations of the lending household. In 2011, 8 percent of people in the European Union reported their households has been in arrears, that is, unable to pay as scheduled "payments related to informal loans from friends or relatives not living in your household". A company may use various kinds of debt to finance its operations as
4465-808: Is the de facto legal tender currency in India . The Indian rupee is also legal tender in Nepal and Bhutan , but the Nepalese rupee and Bhutanese ngultrum are not legal tender in India. Both the Nepalese rupee and Bhutanese ngultrum are pegged with the Indian rupee. The Indian rupee used to be an official currency of several other countries, including the Straits Settlements (now Singapore and parts of Malaysia ), Iraq , Kuwait , Bahrain , Qatar ,
4560-411: Is the act of stripping a currency unit of its status as legal tender. It occurs whenever there is a change of national currency: The current form or forms of money is or are pulled from circulation and retired, often to be replaced with new notes or coins. Sometimes, a country completely replaces the old currency with new currency. The opposite of demonetization is remonetization, in which a form of payment
4655-458: Is the ratio of income available to the amount of debt service due (including both interest and principal amortization, if any). The higher the debt service coverage ratio, the more income is available to pay debt service, and the easier and lower-cost it will be for a borrower to obtain financing. Different debt markets have somewhat different conventions in terminology and calculations for income-related metrics. For example, in mortgage lending in
4750-419: Is the ratio of the total amount of the loan to the total value of the collateral securing the loan. For example, in mortgage lending in the United States, the loan-to-value concept is most commonly expressed as a " down payment ." A 20% down payment is equivalent to an 80% loan to value. With home purchases, value may be assessed using the agreed-upon purchase price, and/or an appraisal . A debt obligation
4845-544: The Bank of Canada and coins issued under the authority of the Royal Canadian Mint Act are legal tender in Canada . However, commercial transactions may legally be settled in any manner agreed by the parties involved with the transactions. For example, convenience stores may refuse $ 100 bank notes if they feel that would put them at risk of being counterfeit victims; however, official policy suggests that
SECTION 50
#17327732356134940-855: The Central Bank of Ireland and such persons as may be designated by the Minister by order, shall be obliged to accept more than 50 coins denominated in euro or in cent in any single transaction." The Decimal Currency Act, 1970 governed legal tender prior to the adoption of the euro and laid down the analogous provisions as in United Kingdom legislation (all inherited from previous UK law ), namely: coins denominated above 10 pence became legal tender for payment not exceeding £10, coins denominated not more than 10 pence became legal tender for payment not exceeding £5, and bronze coins became legal tender for payment not exceeding 20 pence. The Indian rupee
5035-598: The Confederate States of America during the American Civil War . The Confederate 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 the Confederacy was defeated and dissolved ). During World War II the United States printed
5130-580: The Eurozone on 1 January 2002. Although one side of the coins is used for different national marks for each country, all coins and all banknotes are legal tender throughout the eurozone . Although some eurozone countries do not put 1 cent and 2 cent coins into general circulation (prices in those countries are by general understanding always rounded to whole multiples of 5 cent ), 1 cent and 2 cent coins from other eurozone countries remain legal tender in those countries. Council Regulation (EC) No 974/98 limits
5225-742: The French Penal Code of 1807 (art. 475, 11°). In 1870, legal tender was extended to all notes of the Banque de France . Anyone refusing such coins for their whole value would be prosecuted (French Penal Code art. R. 642–3). According to the Economic and Monetary Union Act 1998 of the Republic of Ireland , which replaced the legal tender provisions that had been re-enacted in Irish legislation from previous British enactments, "No person, other than
5320-598: The Reserve Bank , established in 1934, did not have the right to issue coins as legal tender. Coins had to be issued by the Minister of Finance .) The history of bank notes in New Zealand was considerably more complex. In 1840 the Union Bank of Australia started issuing bank notes under provisions of British law but these were not automatically legal tender. In 1844, ordinances were passed by NZ Parliament making
5415-691: The Trucial States (now the UAE ), Oman , Aden Colony and Aden Protectorate (now parts of Yemen ), British Somaliland , British East Africa , and Zanzibar . In 1837, the Indian rupee was made the sole official currency of the Straits Settlements, as it was administered as a part of India. In 1845, the British replaced the Indian rupee with the Straits dollar after administration of
5510-608: The Union Bank banknotes legal tender and authorizing the government to issue debentures in small denominations, thus creating two sets of legal tender. These debentures were circulated but were traded at a discount to their face value because of distrust of the colonial government amongst the settler population. In 1845 the British Colonial office disallowed the Ordinance, namely the Debentures Act 1844 (NZ), and
5605-575: The debt-to-GDP ratio was very high. Economic agents were heavily indebted. This excess of debt, equivalent to excessive expectations on future returns, accompanied asset bubbles on the stock markets. When expectations corrected, deflation and a credit crunch followed. Deflation effectively made debt more expensive and, as Fisher explained, this reinforced deflation again, because, in order to reduce their debt level, economic agents reduced their consumption and investment. The reduction in demand reduced business activity and caused further unemployment. In
5700-453: The "pain of paying" and thus is likely to spend more. Furthermore, the differing physical appearance/form that credit cards have from cash may cause them to be viewed as "monopoly" money vs. real money, luring individuals to spend more money than they would if they only had cash available. Besides these more formal debts, private individuals also lend informally to other people, mostly relatives or friends. One reason for such informal debts
5795-494: The Coinage Act authorized a specific New Zealand coinage and removed legal-tender status from British coins. In the same year the Reserve Bank of New Zealand was established. The bank was given a monopoly on the issue of legal tender. The Reserve Bank also provided a mechanism through which the other issuers of legal tender could phase out their bank notes. These banknotes were convertible into British legal tender on demand at
SECTION 60
#17327732356135890-607: The Eurozone. For example, the Netherlands, Italy, Belgium, Finland, and Ireland have de jure or de facto removed the use of 1 cent and 2 cent coins and adopted cash rounding to the nearest multiple of 5 cents. National laws may also impose restrictions as to maximal amounts that can be settled by coins or notes. Kosovo and Montenegro , which are not members of the European Union and the Eurozone and do not have
5985-676: The Governor of New South Wales by proclamation annexed New Zealand) or from 14 January 1840 (when Captain Hobson (of the Royal Navy) was sworn in as Lieutenant-Governor of New Zealand). The English Laws Act 1858 subsequently confirmed that English legislation passed prior to 14 January 1840 was and had been the law of New Zealand, as applicable to local circumstances. The (UK) Coinage Act 1816 therefore applied and British coins were confirmed as legal tender in New Zealand . (Unusually, until 1989,
6080-518: The Reserve Bank and remained so until the 1938 Sterling Exchange Suspension Notice that suspended provisions of a 1936 amendment of the 1933 Reserve Bank of New Zealand Act. Debt Debt is an obligation that requires one party, the debtor , to pay money borrowed or otherwise withheld from another party, the creditor . Debt may be owed by a sovereign state or country, local government , company , or an individual. Commercial debt
6175-479: The Silver Maple Leaf often carry a blemish that has a milky-white appearance, called a milk spot. This happens when a cleaning detergent is left on the coin when it goes into the annealing furnace.. This issue was addressed in 2018 with the RCM introduction of "MINTSHIELD" surface protection technology to prevent milk spots. The Silver Maple Leaf was originally packaged in Mylar . Since 2009, due to increasing demand, it
6270-539: The Straits Settlements separated from India earlier in that same year. After partition of India and Pakistan in 1947 , the Pakistani rupee came into existence, initially using Indian coins and Indian currency notes simply overstamped with the word "Pakistan". New coins and banknotes were issued in 1948. The Gulf rupee , also known as the Persian Gulf rupee (XPGR), was introduced by the Government of India as
6365-620: The UK (Scotland and Northern Ireland) are not legal tender, but one of the criteria for legal protection under the Forgery and Counterfeiting Act is that banknotes must be payable on demand, therefore withdrawn notes remain a liability of the issuing bank without any time limits. In the case of the euro, coins and banknotes of former national currencies were in some cases considered legal tender from 1 January 1999 until various dates in 2002. Most countries continued to exchange pre-euro notes and coins for
6460-727: The US, other than Confederate money, was from 1933 to 1974, when the government banned most private ownership of gold bullion , including gold coins held for non- numismatic purposes. 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 tender even if they have been withdrawn and replaced by coins, but Canadian $ 1,000 bills remain legal tender even if they are removed from circulation as they arrive at
6555-398: The United States, a debt-to-income ratio typically includes the cost of mortgage payments as well as insurance and property tax, divided by a consumer's monthly income. A "front-end ratio" of 28% or below, together with a "back-end ratio" (including required payments on non-housing debt as well) of 36% or below is also required to be eligible for a conforming loan. The loan-to-value ratio
6650-434: The ability of the debtor to honor his obligations and accordingly give him or her a credit rating . Moody's uses the letters Aaa Aa A Baa Ba B Caa Ca C , where ratings Aa-Caa are qualified by numbers 1-3. S&P and other rating agencies have slightly different systems using capital letters and +/- qualifiers. Thus a government or corporation with a high rating would have Aaa rating. A change in ratings can strongly affect
6745-412: The asset-backed trust is a debt issuer of residential mortgage-backed securities . Central banks , such as the U.S. Federal Reserve System , play a key role in the debt markets. Debt is normally denominated in a particular currency , and so changes in the valuation of that currency can change the effective size of the debt. This can happen due to inflation or deflation , so it can happen even though
6840-509: The borrower and the lender are using the same currency . Some argue against debt as an instrument and institution, on a personal, family, social, corporate and governmental level. Some Islamic banking forbids lending with interest even today. In hard times, the cost of servicing debt can grow beyond the debtor's ability to pay, due to either external events (income loss) or internal difficulties (poor management of resources). Debt with an associated interest rate will increase through time if it
6935-548: The borrowing and repayment history of consumers. Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers. In the United States, the primary credit bureaus are Equifax , Experian , and TransUnion . Debts owed by governments and private corporations may be rated by rating agencies , such as Moody's , Standard & Poor's , Fitch Ratings , and A. M. Best . The government or company itself will also be given its own separate rating. These agencies assess
7030-473: The case of coins of a denomination greater than $ 10, a payment is a legal tender for no more than the value of a single coin of that denomination. Where more than one amount is payable by one person to another on the same day under one or more obligations, the total of those amounts is deemed to be one amount due and payable on that day. In the People's Republic of China, the official currency renminbi serves as
7125-413: The conditions are defined unilaterally by the issuing municipality (local government), but it is a slower process to accumulate the necessary amount. Usually, debt or bond financing will not be used to finance current operating expenditures, the purposes of these amounts are local developments, capital investments, constructions, own contribution to other credits or grants. The debt service coverage ratio
7220-528: The current yield of a Treasury of the same duration. The overall level of indebtedness by a government is typically shown as a ratio of debt-to-GDP . This ratio helps to assess the speed of changes in government indebtedness and the size of the debt due. The United Nations Sustainable Development Goal 17 , an integral part of the 2030 Agenda has a target to address the external debt of highly indebted poor countries to reduce debt distress. Municipal bonds (or muni bonds) are typical debt obligations, for which
7315-657: The debentures were recalled, not without first causing a panic among holders. In 1847, the Colonial Bank of Issue became the only issuer of legal tender. In 1856, however, the Colonial Bank of Issue was disbanded; and through the Paper Currency Act 1856 the Union Bank was confirmed once again as an issuer of legal tender. The Act also authorized the Oriental Bank to issue legal tender - but this bank ceased operations in 1861. Between 1861 and 1874,
7410-459: The documents a beneficiary has to present in order to receive payment include a commercial invoice , bill of lading , and a document proving the shipment was insured against loss or damage in transit. However, the list and form of documents is open to imagination and negotiation and might contain requirements to present documents issued by a neutral third party evidencing the quality of the goods shipped, or their place of origin. Debt consolidation
7505-446: The entire principal balance may be due at the maturity of the loan; the entire principal balance may be amortized over the term of the loan; or the loan may be partially amortized during its term, with the remaining principal due as a " balloon payment " at maturity. Amortization structures are common in mortgages and credit cards . Debtors of every type default on their debt from time to time, with various consequences depending on
7600-501: The following amounts: The 1c and 2c coins were withdrawn from circulation from February 1992 but remain legal tender. Although the Reserve Bank Act 1959 and the Currency Act 1965 establishes that Australian banknotes and coins have legal tender status, Australian banknotes and coins do not necessarily have to be used in transactions and refusal to accept payment in legal tender is not unlawful. A provider of goods or services
7695-475: The government to make such a declaration to assist the Bank of New Zealand when in 1895 the bank encountered financial difficulties that could have led to its failure. In 1914, the Banking Amendment Act gave legal-tender status to bank notes from any issuer and removed the requirement that banks authorized to issue bank notes must redeem them on demand for gold (the gold standard ). In 1933,
7790-402: The interval, such as annually or monthly. Such loans are also colloquially called " bullet loans ", particularly if there is only a single payment at the end – the "bullet" – without a "stream" of interest payments during the life of the loan. A revenue-based financing loan comes with a fixed repayment target that is reached over a period of several years. This type of loan generally comes with
7885-769: The lending of "food money" was commonplace in Middle Eastern civilizations as early as 5000 BC. Religions like Judaism and Christianity for example, demand that debt be forgiven on a regular basis, in order to prevent systemic inequities between groups in society, or anyone becoming a specialist in holding debt and coercing repayment. An example is the Biblical Jubilee year , described in the Book of Leviticus . Similarly, in Deuteronomy chapter 15 and verse 1 states that debts be forgiven after seven years. This
7980-409: The letter of credit will pay an exporter. Letters of credit are used primarily in international trade transactions of significant value, for deals between a supplier in one country and a customer in another. They are also used in the land development process to ensure that approved public facilities (streets, sidewalks, stormwater ponds, etc.) will be built. The parties to a letter of credit are usually
8075-420: The number of coins that can be offered for payment to fifty. Governments that issue the coins must establish the euro as the only legal tender. Due to variations on the legislative meaning of legal tender in various member states and the ability of contract law to overrule the status of legal tender, it is possible for merchants to choose to refuse to accept euro banknotes and coins within specific countries within
8170-685: The parental home, business failure , illness, or home repairs. Over-indebtedness has severe social consequences, such as financial hardship, poor physical and mental health, family stress, stigma, difficulty obtaining employment, exclusion from basic financial services ( European Commission , 2009), work accidents and industrial disease, a strain on social relations (Carpentier and Van den Bosch, 2008), absenteeism at work and lack of organisational commitment (Kim et al. , 2003), feeling of insecurity, and relational tensions. Global debt underwriting grew 4.3 percent year-over-year to US$ 5.19 trillion during 2004. According to historian Paul Johnson ,
8265-787: The protection of the public. Queensland Treasury notes were issued by the Queensland Government and were legal tender in that state. Notes of both categories continued in circulation until 1910, when the Commonwealth Parliament passed the Australian Notes Act 1910 and the Bank Notes Tax Act 1910 . The Australian Notes Act 1910 prohibited the circulation of state notes as money, and the Bank Notes Tax Act 1910 imposed
8360-445: The public starting in 2024 now bear a new obverse of her successor King Charles III . The Silver Maple Leaf's reverse displays the Canadian Maple Leaf . This design has remained unchanged since 1988. In 2014, however, new security features were introduced: radial lines and a micro-engraved laser mark. Also the obverse was affected by this. The phrases CANADA and FINE SILVER 1 OZ ARGENT PUR are universal elements. Granted
8455-473: The regime that incurred them and not debts of the state. International Third World debt has reached the scale that many economists are convinced that debt relief or debt cancellation is the only way to restore global equity in relations with the developing nations . Excessive debt accumulation has been blamed for exacerbating economic problems . For example, before the Great Depression ,
8550-421: The retailers should evaluate the impact of that approach. In the case that no mutually acceptable form of payment can be found for the tender, the parties involved should seek legal advice. Under the Currency Act , there are limits to the value of a transaction for which only coins are used. A payment in coins is a legal tender for no more than the following amounts for the following denominations of coins: In
8645-700: The rupee. To avoid following this devaluation, several of the states using the rupee adopted their own currencies. Qatar and most of the Trucial States adopted the Qatar and Dubai riyal , whilst Abu Dhabi adopted the Bahraini dinar . Only Oman continued to use the Gulf rupee until 1970, with the government backing the currency at its old peg to the pound. Oman later replaced the Gulf rupee with its own rial in 1970. On 8 November 2016, Prime Minister Narendra Modi announced that existing INR 500 and INR 1000 banknotes would no longer be accepted as legal tender with
8740-519: The sending of coins or banknotes, of any country, except via registered post . In 1901, notes in circulation in Australia consisted of bank notes payable in gold coin and issued by the trading banks, and Queensland Treasury notes. Bank notes circulated in all states except Queensland , but were not legal tender except for a brief period in 1893 in New South Wales . There were, however, some restrictions on their issue and other provisions for
8835-449: The terms of the debt and the law governing default in the relevant jurisdiction. If the debt was secured by specific collateral , such as a car or house, the creditor may seek to repossess the collateral. In more serious circumstances, individuals and companies may go into bankruptcy . Common types of debt owed by individuals and households include mortgage loans , car loans, credit card debt, and income taxes . For individuals, debt
8930-546: The unlimited legal tender for all transactions. It is illegal for any public institution or individual to refuse the currency when settling public or private debts. In June 2021, El Salvador became the first country to accept Bitcoin as legal tender, after the Legislative Assembly had voted 62–22 to pass a bill submitted by President Nayib Bukele classifying the cryptocurrency as such. Euro coins and banknotes became legal tender in most countries of
9025-479: Was aimed at war profiteers . Individual coins or banknotes can be demonetised 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 all Bank of England banknotes by exchanging them for legal tender currency at its counters in London (or by post) regardless of how old they are. Banknotes issued by retail banks in
#612387