Can A Bank Refuse to Keep My Account Open Because of A ‘Lawful Money Demand’?

Can A Bank Refuse to Keep My Account Open Because of A ‘Lawful Money Demand’?

No! All banks (federal, state, public) have a fiduciary responsibility to their shareholders. While there is a clause that permits the bank to close down accounts for any reason – legally they cannot exercise that option unless they are losing money – that’s what fiduciary responsibility means! Lawful money doesn’t lose a bank money, they still profit. Only now, the bank has simply reduced its potential profitability by 90%. Naturally, a bank will try to come up with a ingenuine reason for closure and since most banks are billion dollar corporations - it is hard to fight such a decision despite being right. 

Interestingly enough, people have been redeeming lawful money since 1933 (it’s actually been an issue since the Civil War). Most of the time, they would just exchange the Federal Reserve notes for United States notes, but that changed in 1977. Since then, the banks do not circulate US Bank notes (with red seals and serial numbers) Federal Reserve notes serve just fine, once the demand is recorded on all deposits and withdrawals, it’s all the proof you will need. The banks have no choice. A banks, the IRS and the Federal Reserve would never willingly violate the agreement they have with Congress.
    • Related Articles

    • Why Can’t I Get Gold for My Lawful Money Demand?

      Federal Reserve notes serve as lawful money upon demand, the bank will not give you any other kind of money: US Bank Notes, Gold Certificates, Silver Certificates, stamps or united States Postal money orders. Do not ask for any special form, many ...
    • Does Lawful Money Need A Special Bank Account

      No, lawful money redemption can be utilized in any form of bank account.
    • Income Taxes and Lawful Money

      Under its power to borrow money, Congress is authorized by the Constitution to contract debt, and whenever something is borrowed it must be returned. When Congress spends the contracted private credit, each use of credit is debt which must be ...
    • What Do I Need To Open My Trust Bank Account

      First, ensure the Trust Corpus and forms are properly filled out (do not sign them yet). Next, get the EIN from the IRS, online. With these materials in hand, set up an appointment for one of the following banks: Chase Bank TD Ameritrade PNC CitiBank ...
    • Does Lawful Money Work With An Interest Bearing or Savings Account

      Yes. Lawful money is the redemption of the currency used and is not based on the type of bank account.