Last week We discussed a story about an old 1912 lease for a landmark Cleveland, Ohio building, which a court ruled is still payable in gold coin. -EditorJoe Boling writes:
I am amazed that a Federal court has determined that the contract payable in gold is enforceable - I understood that all such contracts were nullified by the gold withdrawal decrees of 1933.
Franois Velde of the Federal Reserve Bank of Chicago writes:
The Cleveland gold clause case is astounding, since US law says explicitly (8 USC 5118(d)(2)): "An obligation issued containing a gold clause or governed by a gold clause is discharged on payment (dollar for dollar) in United States coin or currency that is legal tender at the time of payment."
To read the complete article, see: 1912 Gold Coin Lease Payment Term is Enforceable, 6th Circuit Rules (http://www.abajournal.com/news/1912_gold_coin_lease_payment
Wayne Homren, Editor
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