Federal Reserve Note Law and Legal Definition

A Federal Reserve Note is the paper currency in circulation in the United States. Federal Reserve Notes are a kind of United States banknote printed by the United States Bureau of Engraving and Printing. Section 411 of Title 12 of the United States Code authorizes a Federal Reserve Note. Pursuant to the Federal Reserve Act of 1913, the Federal Reserve Banks issue these notes and are effectively non-interest-bearing promissory notes payable to bearer on demand. Federal Reserve Notes are issued in denominations of $1, $2, $5, $10, $20, $50, $100, $500, $1,000, $5,000, and $10,000. These notes bear the words “this note is legal tender for all debts, public and private.”