diff --git a/src/cpp/ripple/NetworkOPs.cpp b/src/cpp/ripple/NetworkOPs.cpp
index 34d1fa9b2..0ffd9e0fa 100644
--- a/src/cpp/ripple/NetworkOPs.cpp
+++ b/src/cpp/ripple/NetworkOPs.cpp
@@ -197,12 +197,12 @@ void NetworkOPs::submitTransaction (Job&, SerializedTransaction::pointer iTrans,
 
     // FIXME: Should submit to job queue
     theApp->getIOService ().post (boost::bind (&NetworkOPs::processTransaction, this,
-                                  boost::make_shared<Transaction> (trans, false), false, callback));
+                                  boost::make_shared<Transaction> (trans, false), false, false, callback));
 }
 
 // Sterilize transaction through serialization.
 // This is fully synchronous and deprecated
-Transaction::pointer NetworkOPs::submitTransactionSync (Transaction::ref tpTrans, bool bAdmin, bool bSubmit)
+Transaction::pointer NetworkOPs::submitTransactionSync (Transaction::ref tpTrans, bool bAdmin, bool bFailHard, bool bSubmit)
 {
     Serializer s;
     tpTrans->getSTransaction ()->add (s);
@@ -217,7 +217,7 @@ Transaction::pointer NetworkOPs::submitTransactionSync (Transaction::ref tpTrans
     else if (tpTransNew->getSTransaction ()->isEquivalent (*tpTrans->getSTransaction ()))
     {
         if (bSubmit)
-            (void) NetworkOPs::processTransaction (tpTransNew, bAdmin);
+            (void) NetworkOPs::processTransaction (tpTransNew, bAdmin, bFailHard);
     }
     else
     {
@@ -315,7 +315,7 @@ void NetworkOPs::runTransactionQueue ()
         theApp->getIOService ().post (boost::bind (&NetworkOPs::runTransactionQueue, this));
 }
 
-Transaction::pointer NetworkOPs::processTransaction (Transaction::pointer trans, bool bAdmin, stCallback callback)
+Transaction::pointer NetworkOPs::processTransaction (Transaction::pointer trans, bool bAdmin, bool bFailHard, stCallback callback)
 {
     LoadEvent::autoptr ev = theApp->getJobQueue ().getLoadEventAP (jtTXN_PROC, "ProcessTXN");
 
@@ -345,7 +345,6 @@ Transaction::pointer NetworkOPs::processTransaction (Transaction::pointer trans,
     }
 
     boost::recursive_mutex::scoped_lock sl (theApp->getMasterLock ());
-    Transaction::pointer dbtx = theApp->getMasterTransaction ().fetch (trans->getID (), true);
     bool didApply;
     TER r = mLedgerMaster->doTransaction (trans->getSTransaction (),
                                           bAdmin ? (tapOPEN_LEDGER | tapNO_CHECK_SIGN | tapADMIN) : (tapOPEN_LEDGER | tapNO_CHECK_SIGN), didApply);
@@ -386,11 +385,14 @@ Transaction::pointer NetworkOPs::processTransaction (Transaction::pointer trans,
     }
     else if (isTerRetry (r))
     {
-        // transaction should be held
-        WriteLog (lsDEBUG, NetworkOPs) << "Transaction should be held: " << r;
-        trans->setStatus (HELD);
-        theApp->getMasterTransaction ().canonicalize (trans, true);
-        mLedgerMaster->addHeldTransaction (trans);
+        if (!bFailHard)
+        {
+                // transaction should be held
+                WriteLog (lsDEBUG, NetworkOPs) << "Transaction should be held: " << r;
+                trans->setStatus (HELD);
+                theApp->getMasterTransaction ().canonicalize (trans, true);
+                mLedgerMaster->addHeldTransaction (trans);
+        }
     }
     else
     {
@@ -398,7 +400,7 @@ Transaction::pointer NetworkOPs::processTransaction (Transaction::pointer trans,
         trans->setStatus (INVALID);
     }
 
-    if (didApply || (mMode != omFULL))
+    if (didApply || ((mMode != omFULL) && !bFailHard))
     {
         std::set<uint64> peers;
 
diff --git a/src/cpp/ripple/NetworkOPs.h b/src/cpp/ripple/NetworkOPs.h
index ef2532ec9..329acbb35 100644
--- a/src/cpp/ripple/NetworkOPs.h
+++ b/src/cpp/ripple/NetworkOPs.h
@@ -133,13 +133,13 @@ public:
     //
     typedef FUNCTION_TYPE<void (Transaction::pointer, TER)> stCallback; // must complete immediately
     void submitTransaction (Job&, SerializedTransaction::pointer, stCallback callback = stCallback ());
-    Transaction::pointer submitTransactionSync (Transaction::ref tpTrans, bool bAdmin, bool bSubmit);
+    Transaction::pointer submitTransactionSync (Transaction::ref tpTrans, bool bAdmin, bool bFailHard, bool bSubmit);
 
     void runTransactionQueue ();
-    Transaction::pointer processTransaction (Transaction::pointer, bool bAdmin, stCallback);
-    Transaction::pointer processTransaction (Transaction::pointer transaction, bool bAdmin)
+    Transaction::pointer processTransaction (Transaction::pointer, bool bAdmin, bool bFailHard, stCallback);
+    Transaction::pointer processTransaction (Transaction::pointer transaction, bool bAdmin, bool bFailHard)
     {
-        return processTransaction (transaction, bAdmin, stCallback ());
+        return processTransaction (transaction, bAdmin, bFailHard, stCallback ());
     }
 
     Transaction::pointer findTransactionByID (uint256 const& transactionID);
diff --git a/src/cpp/ripple/RPCHandler.cpp b/src/cpp/ripple/RPCHandler.cpp
index 715a1ab50..f2a0a5a32 100644
--- a/src/cpp/ripple/RPCHandler.cpp
+++ b/src/cpp/ripple/RPCHandler.cpp
@@ -62,7 +62,7 @@ RPCHandler::RPCHandler (NetworkOPs* netOps, InfoSub::pointer infoSub) : mNetOps
     ;
 }
 
-Json::Value RPCHandler::transactionSign (Json::Value jvRequest, bool bSubmit, ScopedLock& mlh)
+Json::Value RPCHandler::transactionSign (Json::Value jvRequest, bool bSubmit, bool bFailHard, ScopedLock& mlh)
 {
     mlh.unlock ();
 
@@ -343,7 +343,7 @@ Json::Value RPCHandler::transactionSign (Json::Value jvRequest, bool bSubmit, Sc
     try
     {
         // FIXME: For performance, should use asynch interface
-        tpTrans = mNetOps->submitTransactionSync (tpTrans, mRole == ADMIN, bSubmit);
+        tpTrans = mNetOps->submitTransactionSync (tpTrans, mRole == ADMIN, bFailHard, bSubmit);
 
         if (!tpTrans)
         {
@@ -1653,7 +1653,8 @@ Json::Value RPCHandler::doRipplePathFind (Json::Value jvRequest, int& cost, Scop
 Json::Value RPCHandler::doSign (Json::Value jvRequest, int& cost, ScopedLock& MasterLockHolder)
 {
     cost = rpcCOST_EXPENSIVE;
-    return transactionSign (jvRequest, false, MasterLockHolder);
+    bool bFailHard = jvRequest.isMember ("fail_hard") && jvRequest["fail_hard"].asBool ();
+    return transactionSign (jvRequest, false, bFailHard, MasterLockHolder);
 }
 
 // {
@@ -1664,7 +1665,8 @@ Json::Value RPCHandler::doSubmit (Json::Value jvRequest, int& cost, ScopedLock&
 {
     if (!jvRequest.isMember ("tx_blob"))
     {
-        return transactionSign (jvRequest, true, MasterLockHolder);
+        bool bFailHard = jvRequest.isMember ("fail_hard") && jvRequest["fail_hard"].asBool ();
+        return transactionSign (jvRequest, true, bFailHard, MasterLockHolder);
     }
 
     Json::Value                 jvResult;
@@ -1711,7 +1713,8 @@ Json::Value RPCHandler::doSubmit (Json::Value jvRequest, int& cost, ScopedLock&
 
     try
     {
-        (void) mNetOps->processTransaction (tpTrans, mRole == ADMIN);
+        (void) mNetOps->processTransaction (tpTrans, mRole == ADMIN,
+            jvRequest.isMember ("fail_hard") && jvRequest["fail_hard"].asBool ());
     }
     catch (std::exception& e)
     {
diff --git a/src/cpp/ripple/RPCHandler.h b/src/cpp/ripple/RPCHandler.h
index 6d53204dd..8979b0d2f 100644
--- a/src/cpp/ripple/RPCHandler.h
+++ b/src/cpp/ripple/RPCHandler.h
@@ -37,7 +37,7 @@ class RPCHandler
     // Utilities
     void addSubmitPath (Json::Value& txJSON);
     boost::unordered_set<RippleAddress> parseAccountIds (const Json::Value& jvArray);
-    Json::Value transactionSign (Json::Value jvRequest, bool bSubmit, ScopedLock& mlh);
+    Json::Value transactionSign (Json::Value jvRequest, bool bSubmit, bool bFailHard, ScopedLock& mlh);
 
     Json::Value lookupLedger (Json::Value jvRequest, Ledger::pointer& lpLedger);
 
diff --git a/src/cpp/ripple/ripple_Peer.cpp b/src/cpp/ripple/ripple_Peer.cpp
index f4fdde050..00c0385d4 100644
--- a/src/cpp/ripple/ripple_Peer.cpp
+++ b/src/cpp/ripple/ripple_Peer.cpp
@@ -1081,7 +1081,7 @@ static void checkTransaction (Job&, int flags, SerializedTransaction::pointer st
         else
             theApp->getHashRouter ().setFlag (stx->getTransactionID (), SF_SIGGOOD);
 
-        theApp->getOPs ().processTransaction (tx, isSetBit (flags, SF_TRUSTED));
+        theApp->getOPs ().processTransaction (tx, isSetBit (flags, SF_TRUSTED), false);
 
 #ifndef TRUST_NETWORK
     }