Re: tendering notes for discharge
I think the main problem is that, while governmental entities probably can take a note at face value, non-governmental entities probably can't because they'll have to have their bank process it, and the bank will probably only take it at a discount and charge interest for handling it. This may explain why a poster, who in another thread claimed to have tendered a note to a debt collector, only received a partial credit. I'd bet it's because the d.c.'s bank wouldn't take the note at face.
A debt collector friend ("Stan") has seen this work from the inside as mentioned
here. To elaborate on that post, his boss received a note from a debtor but didn't know what to do with it and asked Stan to look at it. His boss was ready to discard the note when Stan advised him not to do that as UCC § 3-603(b) may apply, but to instead call their bank. His boss was instructed by Webster Bank to send the note to a facility in Toledo, Ohio via registered mail--a big requirement--addressed to someone who's either in charge of or an important player in Webster's Billing & Receiving Dept. A search on Webster's site shows no indication of their having a branch out there. Anyhow, after processing something would be returned to the company via registered mail. Of course the bank must have charged interest, as discussed in the above thread. I can only assume Stan's company absorbed it probably because the interest would be tax deductible. His boss didn't copy the note prior to mailing and Stan can't ask the auditor for a printout of that account's activity without raising eyebrows, so we can't substantiate any of this.
BTW, this is the same friend who, I claimed in an older thread, discharged his Federal student loan with a note. In that case, too, it was required he send his note via registered mail to the top man of that loan program. I think I read an old post wherein it was claimed a federal court ruled/admitted that sending instruments via registered mail renders them obligations of the U.S., or something like that.
The point to keep in mind is that non-gov entities probably won't know how to enter the note on their ledgers, hence their inclination to discard them. It's easy to forget that while we may have knowledge of some of these things, the rank & file of most entities are often less knowledgable. They're not necessarily giving us a hard time just for amusement. As someone noted, you'll probably need to deal with someone higher up like the CFO, but sometimes someone high enough who interfaces with that entity's bank will do.
Inform that individual you'll be tendering a note, notarized with the maker's SSN, but you need for them to call their bank and find out at what ratio the bank will take it, and how much interest the bank will charge on the discount amount of $XXX.XX. It's unlikely a local branch will process the note, so they'll be given special mailing instructions. The creditor should be willing to absorb the interest if it can be deducted from its taxes. If you sound like you know what you're talking about and claim you've done this before, they may be more accomodating. If the creditor is still reluctant (my current case), get their banking coordinates and try to deal with their bank directly. However, you'll have to pay the interest.
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