‘Tis the Season…
for Counter-feiting, fa la la la la, la la la la. Interestingly enough there are not many catchy carols about the counterfeiting season. But as I was about the other day, I saw a sign at a particular business to mark the season, the sign was to the effect that the business would no longer be accepting 100 dollar bills. Which got me to thinking, can they do that? So I headed straight for the Currency Act, R.S.C. 1985, c.C-52 in order to figure it out. And what to my wondering eyes did appear? …. well, not the answer to my question.
I can tell you section 8(2)(a-e), specifies how much in coins can be used at one time. So the next time you see one of those stories of someone paying their thousands of dollars worth of parking tickets in coins, you can consult the act to find out that the municipality in question could refuse them. As for my 100 dollar bill question, I do have half an answer, section 8(1)(b) specifies:
Subject to this section, a tender of payment of money is a legal tender if it is made (b) in notes issued by the Bank of Canada pursuant to the Bank of Canada Act intended for circulation in Canada.
So it seems a business cannot turn down 100 dollar bills, but I have the sneaking suspicion that there is more to this question. So does someone have the answer to this?
And if you are wondering how to detect counterfeit fills, the Bank of Canada has some advice: Debunking the myths about counterfeit money.
This question came up in my banking law class many years ago. If you tender with a (genuine) $100 bill, the business must accept it as payment. However, there is no requirement in the Act that they give you change back.
This entry from the RCMP FAQ on counterfeiting may interest you:
“What can I do if a retailer refuses to accept my $100 note? Can retailers legally refuse notes?
* The method of payment (e.g. cash, debit or credit card) used in a transaction is a private agreement between the buyer and the seller. Each has the right to accept or refuse a bank note when accepting payment or receiving change.”
Source: http://www.rcmp-grc.gc.ca/scams/counterfaq_e.htm#retailer
Well it’s not money, but this story about a law student at Osgoode counterfeiting her undergrad degree is interesting too.