Glorious Independence Day everybody! I have some REALLY cool insider info. LEGIT insider info. As in...NOT hearsay insider info!
So...first, it has been a while since my sister has worked at her previous job...so, I do have a good reason for forgetting that she worked in the background security division of a bank. She was one of the people responsible for catching illegitimate and illegal transactions.
"Yeah... Okay... Why should I care???" Just bare with me a sec!
I was talking to her on the phone this afternoon and started telling her about state national theory, and such. Turns out, she had already heard about it and had looked into it a bit. Let me jump ahead to the good part...
So, I started telling her about the actual definition of money vs negotiable instruments...and pointed out that although it IS illegal to copy the FRNs and coin our own money...it is entirely legal for us to create negotiable instruments. It was at this point she stopped my cool-factor momentum with a simple, "Oh yeah. We had a guy who regularly came in and submitted his negotiable instruments to us."
So, not only did she verify the creation of negotiable instruments is absolutely fine and legal...BUT...and this is the IMPORTANT PART....she told me there are two possible outcomes of doing so.
Banks DO have the option of accepting your negotiable instruments. NOTICE...I said "OPTION". They DO have a way to reject them if they so choose. What happens if they choose to reject them? They MUST immediately terminate ALL your accounts, give you your money, and permanently ban you from their business!
Oh yeah, I know...fear...terror...spooky... smh...
Simple to deal with. She said banks are ALL familiar with this possibility. ALL BANKS. Not some...ALL. They do NOT like NI's submitted that look unprofessional. The one she worked at simply asked their client if he would start doing his NI's on professional letterhead instead of plain paper.
you want to submit an NI to your local bank...do NOT just walk in and
present it for deposit or exchange. IF they do not want to accept
it...you will find yourself suddenly perma-banned from that bank...with
no recourse. Go in and ASK THEM how they prefer NI's to be presented for
deposit...and follow their request. AND...if they won't take your
NI...they don't have to immediately terminate all your accounts and