§ Mrs. GormanTo ask the Chancellor of the Exchequer if he will take steps to abolish the operation of United Kingdom tender laws; and if he will make a statement.
§ Mr. LilleyNo. The designation of certain currency of the realm as legal tender provides a safeguard for both creditors and debtors. A creditor may insist on payment in legal currency; and, in the absence of a prior contractual agreement regarding payment, a debtor can offer a "legal tender", that is, the exact amount of a debt (no change can be required) in legal currency. If refused, its subsequent payment into court prevents any further legal action against the debtor.