I've been researching all day and have found little information on
what I'm looking for, but a whole lot of answers to other questions.

Here is my question:

Does a California Bank legally have the right to refuse a check based
on the wording of a legal endorsement such as..

"John Smith
Deposited for credit on account
or exchanged for non-redeemable
federal reserve notes."

I accept that the answer may be "they can refuse any check they like"
and if either is the answer, can the law be cited?

Thank you for your help and time.

HI Tony,
I guess this is the subject that you are referring to:

http://www.libertydollar.org/Federal_Reserve_Articles/Federal_Reserve_12.htm

I just read the first screen-full, but quite interesting.

It sounds like you are right, that banks can "refuse any check they
like", and that maybe the IRS has suggested that they do refuse checks
with this endorsement.
If so, that would seem to support the argument on the "libertydollar"
site, which would be a very curious situation.
I hope there will be some interesting comments.
Myoarin

PS:  the new Euro notes in Europe have no text, nothing that says that
they are legal tender, just the intials of the European Central Bank
in different languages and the signature of the bank's president.
Is it really money?  Maybe I should post a question on the subject.

Ironically, I'm very familiar with the Liberty Dollar website and have
worked on related projects for them and hadn't thought to check their
site.

Pretty neat stuff, 1 oz. pure silver coins.

Unfortunately, text on that site seems not to cite any law that says a
bank can refuse a particular endorsement or any check in general.

But thanks for your comments.

Tony,
That is just an thought of mine, that the govt and/or IRS has maybe
twisted the banks' arms a little.  The IRS can always make life a
little more difficult for companies, just having an audit without
finding anything is a nuisance.
I read the whole site today, along with the link to the Treasury Dept FAQs.
THere were other sites found by my search.  I think I used the whole
text of the endorsement  - all the words within quotation marks.  I
posted the link to let others know what the question is about, rather
assuming that you were already  aware of the background.
Curious ...
Regards, Myoarin