Legal Definitions - hard money

Hard money refers to physical currency, such as coins and bills, that is used as a medium of exchange. It is different from paper currency, which is not backed by a physical commodity like gold or silver.

• A person pays for their groceries with cash from their wallet. This is an example of hard money.
• A business owner receives a payment in the form of a check, which they deposit into their bank account. This is not an example of hard money, as it is not physical currency.

The examples illustrate that hard money is tangible currency that can be used to make purchases or payments. It is a form of money that is widely accepted and recognized as a medium of exchange.