Coins as security for loans
Official text prohibited actmental stateif conditionpenaltylegal term
Whoever lends or borrows money or credit upon the security of such coins of the United States as the Secretary of the Treasury may from time to time designate by proclamation published in the Federal Register, during any period designated in such a proclamation, shall be or imprisoned not more than one year, or both.
History: (Added Pub. L. 89–81, title II, §212(a), July 23, 1965, 79 Stat. 257 (PDF, 1.0 MB); amended Pub. L. 103–322, title XXXIII, §330016(1)(L), Sept. 13, 1994, 108 Stat. 2147 (PDF, 52 MB).)
Simplified explanation
It is a federal crime to lend or borrow money or credit using certain U.S. coins as security (collateral), when the Secretary of the Treasury has named those coins in a proclamation published in the Federal Register. The ban applies only during the time period set in that proclamation.