Legal glossary

Lawful tender

Lawful tender: Not a separate category of money under current federal law; the statutory term is "legal tender," which includes U.S. coins and currency, including Federal Reserve notes (31 U.S.C. § 5103). A related phrase, "lawful money," still appears in some statutes, such as the provision on redeeming Federal Reserve notes (12 U.S.C. § 411), but we have not found a court decision holding that it means only gold or silver, or that demanding "lawful money" changes a person's tax or debt obligations; courts that have addressed these arguments, such as Milam v. United States, 524 F.2d 629 (9th Cir. 1974), ruled the other way.

Lawful tender — a study group reading together

What lawful tender means

In practice, you will see lawful tender in pleadings, motions, orders and court rules. The definition above explains the general meaning. Even so, the meaning can shift with context. Therefore, always read it alongside the rule or document where it appears.

Where lawful tender comes up

The term is used across many kinds of cases. For example, you may see it in pleadings, motions and court orders. To see it in context, browse the motions and procedures library or the Learn the Law topics.

How to research the term

First, read the term where it actually appears. A rule, statute or court decision may define it for its own purposes. Next, check whether your court has a local rule that uses lawful tender in a special way. Then look at recent decisions from courts in your jurisdiction. They show how judges apply the term today. Also, remember that state law can differ from federal law. For that reason, use our state procedures guide to find your state’s rules. Finally, confirm every source is current before you rely on it.

You can read the current federal court rules online for free.

Related legal terms

Why precise terms matter

Courts read legal terms closely. As a result, knowing the exact meaning of a word helps you follow orders, rules and filings. Each glossary entry on Lawtopolis is short on purpose and links to the pages where the term is used.

Sources

Sources last reviewed: 2026-10-24

Lawtopolis provides legal information and education, not legal advice. Using this site does not create an attorney-client relationship. Laws and court rules vary by jurisdiction and change over time; verify every authority against the official source and consult a licensed attorney in your jurisdiction about your situation.