Realcent.org

I was reading through that horrible C-38 budget bill that got passed a few days ago and noticed some changes to the Currency Act:

388. Subsection 8(4) of the Currency Act is repealed.

389. Section 9 of the Act is replaced by the following:

Calling in of coins
9. (1) The Governor in Council may, by order, call in coins of any date and denomination.

Effect of call in
(2) A coin that has been called in is not current.

Redemption of coins
9.01 (1) The Governor in Council may make regulations for the redemption by the Minister of coins of the currency of Canada that are or that have at any time been current in Canada.

Payments for redemption of coins
(2) Payments for the redemption of coins, including related costs, shall be made out of the Consolidated Revenue Fund on the authorization of the Minister.

Section 8(4) of the Currency Act which was repealed stated: "(4) A coin that has been called in is not legal tender."
This means that even though the pennies have been called in by the Gov't, they can still be used as legal tender, as the Gov't promised.

Section 11 of the Currency Act relates to melting coins. It says: "11. (1) No person shall, except in accordance with a licence granted by the Minister, melt down, break up or use otherwise than as currency any coin that is current and legal tender in Canada."

If a coin that has been called in is not current, as it now says in 9(2) of the Currency Act, then the penny, though still legal tender, is not current, and thus can be legally melted. The melt ban requires that a coin is both current and legal tender, according to Section 11.

This seems to be the best possible situation. You can spend it or hoard it for melt value, and bring it to the smelter at will. Am I reading this wrong?

Yes, you are reading this wrong.

They have not called in coins of any denomination and date at this time.

If they do "call them in", then you would be correct. In the meantime, "No person shall, except in accordance with a licence granted by the Minister, melt down, break up or use otherwise than as currency..."

Yes they have called them in....or at least they have announced that they will call them in this fall.

TwoPenniesEarned wrote:Section 11 of the Currency Act relates to melting coins. It says: "11. (1) No person shall, except in accordance with a licence granted by the Minister, melt down, break up or use otherwise than as currency any coin that is current and legal tender in Canada."

I'm with you T.P.E.
The one cent coin is a coin and is legal tender, but may not be current. Just because a coin is not current if it has been called in doesn't mean that a coin not called in is current. Find the legal definition of "current" and you'll find your answer.

Here is an example.

The $1000 bill is not a current currency unit and is supposed to be sent back to the bank of Canada when it hits a chartered bank teller.

It is still legal currency (just like a 25 cent Shinplaster). A chartered bank must accept it as face value.

However, since it is still legal currency, regardless of if it is called in, you can not destroy it without a license.

But there is no law against exporting it.

Exactly, you can take money out of the country, but only a certain amount unless you get a special permit. I think that is how that works. I'm not for sure.
Now, since Canadian currency is not used in transactions in the USA I'd say melt them down in the USA.