Legal Definition and Related Resources of Bill of credit

In Constitutional Law. Paper Issued by the authority of a state on the faith of the state, and designed to circulate as money. 11 Pet. (U.S.) 257. Promissory notes or bills issued by a state government, exclusively, on the credit of the state, and intended to circulate through the community for its ordinary purposes as money, redeemable at a future day, and for the pajrment of which the faith of the state is pledged. 4 Kent, Comm. 408. The constitution of the United States provides that no state shall emit bills of credit, or make anything but gold and silver coin a tender in payment of debts. Article 1, § 10. This prohibition, it seems, does not apply to bills issued by a bank owned by the state, but having a specific capital set apart (11 Pet. [U.S.] 257; 13 How. [U.S.] 12; but see 4 Pet. [U.S.] 410) nor does it apply to notes issued by corporations or individuals which are not made legal tender (4 Kent, Comm. 408, and note). In Mercantile Law. A letter desiring the addressee to give , credit to the bearer for goods or money. More commonly called “letter of credit.” Comyn, Dig. “Merchant” (F 3) ; 3 Burrows, 1667; 13 Miss. 491; 4 Ark. 44; R. M. Charlt. (Ga.) 151.

What does Bill Of Credit mean in American Law?

The definition of Bill Of Credit in the law of the United States, as defined by the lexicographer Arthur Leff in his legal dictionary is:

A bill of exchange or promissory note issued by a government against its own credit and meant to circulate as lawful paper money. The U.S. federal reserve note is a modern example of a bill of credit. See also letter of credit.

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This definition of Bill Of Credit Is based on the The Cyclopedic Law Dictionary . This definition needs to be proofread..

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