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I work at a gas station and a man brought in a coin that was so defaced that you could no longer see a picture on either side but because of it size you could tell what it was but is this type of money still considered legal tender?

denise jacobs
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  • if it were, a simple disc of metal the proper size and colour would be legal tender... – jwenting Aug 28 '13 at 06:41
  • @jwenting don't forget weight, most vending machines will accept coins of the correct weight and size – ratchet freak Aug 28 '13 at 08:40
  • @ratchetfreak yes, and there's a lot of fraud as a result of them testing on only that. And trouble, like recently when the EU changed the composition of one of the Euro coins virtually without notice, causing it to be denied by all vending machines across Europe. – jwenting Aug 28 '13 at 10:10

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Even if it is legal tender - you are under no obligation to accept it - http://www.treasury.gov/resource-center/faqs/Currency/Pages/legal-tender.aspx.

"The pertinent portion of law that applies to your question is the Coinage Act of 1965, specifically Section 31 U.S.C. 5103, entitled "Legal tender," which states: "United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues."

This statute means that all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor. There is, however, no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services. Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise. For example, a bus line may prohibit payment of fares in pennies or dollar bills. In addition, movie theaters, convenience stores and gas stations may refuse to accept large denomination currency (usually notes above $20) as a matter of policy."

As to mutilated coins criteria, see http://www.usmint.gov/email/MUTILATEDCOIN.pdf:

"What is the difference between Uncurrent and Mutilated coins? UNCURRENT : U.S. coins which are merely worn or reduced in weight by natural abrasion yet are readily and clearly recognizable and machine countable, are classified as Uncurrent Coins. MUTILATED : All coins that are bent, broken, corroded, not whole, melted together and not machine countable, are classified as Mutilated Coins. "

"Are there any mutilated coins that the U.S. Mint will not redeem? The following will not be redeemed by the U.S. Mint: Fused material unrecognizable as U.S. currency. Foreign coins. Counterfeit coins and slugs. Altered coins, changed to pass as another denomination. Coins or lumps of coins, which contain lead, solder or other substances, which would make them unsuitable for use as coinage metal. Precious coins (gold or silver). "

Ofir
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  • I went over your sources, they answer the question. Please provide appropriate quotes from the sources to support your claim. – SIMEL Aug 28 '13 at 09:09