“Accepted for Value,” Bills of Exchange and Debt Discharge
Writing "accepted for value" on a bill, or sending a self-created bill of exchange, does not pay or discharge anything.
The claim
What supporters point to
What the law actually says
Under UCC Article 3, “acceptance” is the drawee’s signed agreement to pay a draft drawn on it — a bank accepting a check drawn on it, for example. A debtor writing “accepted for value” on a bill accepts nothing on anyone’s behalf and creates no payment. An instrument is only as good as the obligation of the party who must pay it; a self-made “bill of exchange” drawn on the U.S. Treasury or a fictitious account does not move any money. Federal law makes United States coins and currency, including Federal Reserve notes, legal tender for all debts (31 U.S.C. § 5103).
How courts have ruled
The court rejected a borrower's attempt to pay off a mortgage by sending the lender a "bill of exchange" under a redemption theory, holding that no payment had been made. she did not tender payment, but rather a worthless piece of paper.
The Court of Federal Claims dismissed a "redemption" complaint claiming a secret Treasury trust account created through the plaintiff's birth certificate and Social Security number, which the plaintiff tried to draw on with a "bill of exchange" citing HJR-192, and called the claims frivolous. Neither birth certificates nor social security numbers recognize or impose contractual rights
The real doctrine behind the vocabulary
Bills of exchange, drafts and acceptance are real concepts of negotiable-instrument law, used every day for checks and trade financing. See negotiable instruments. They work because a real party with real funds agrees to pay.
What happens to people who rely on it
Courts treat these arguments as frivolous. Relying on them has led to dismissed cases, lost homes and property, monetary sanctions, orders restricting future filings, and — where false liens or fraudulent financial documents were involved — criminal prosecution. Federal law makes it a crime to file, or attempt to file, in any public record or private record generally available to the public, a false lien or encumbrance against the real or personal property of a federal officer or employee, on account of the performance of official duties, knowing or having reason to know it is false — punishable by up to 10 years in prison (18 U.S.C. § 1521).
Sending fictitious financial instruments can also violate federal law prohibiting fictitious obligations.
The real truth: Writing "accepted for value" on a bill, or sending a self-created bill of exchange, does not pay or discharge anything.
How to check the accepted for value claim yourself
If someone offers you a strategy built on accepted for value, ask for the court decisions that accepted it. The decisions cited on this page all rejected it. Instead, read the real statute or rule the claim cites, and then read how courts have applied it. Also, look at the cases listed above. They show what happens when people raise the argument in court. For a real dispute, talk to a licensed attorney in your state. You can start with our directory.
Sources and further reading
Official sources used on this page:
Related reading on Lawtopolis:
Sources
- Bryant v. Washington Mutual Bank, 524 F. Supp. 2d 753 (W.D. Va. 2007)
- Gravatt v. United States, 100 Fed. Cl. 279 (2011)
Sources last reviewed: 2026-10-23
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.