A youth spotted wandering around Gowkthrapple with a sword later told police that people owed him money.
Ricky Swales shouldn't even have been in the Wishaw area, having been ordered by a Sheriff to stay out of his home town.
Hamilton Sheriff Court heard he dropped the weapon when confronted by police officers near his mum's house.
The 19-year-old admitted unlawful possession of a sword and breaching bail orders by entering Wishaw and being outside his home address at night.
He also admitted threatening or abusive behaviour at Motherwell police station.
Swales, of Tollcross, was the subject of seven bail orders at the time.
Alice Carey, prosecuting, said the accused's mum spotted him in Birkshaw Brae around 10.15pm on September 4.
He was carrying what she thought was a knife so she contacted the police.
Ms Carey told the court: "The accused was seen on CCTV walking freely around Birkshaw Brae with what appeared to be a sword in his possession.
"He was seen entering a common close. Police officers attended and instructed him to drop the weapon. He was taken to the ground and handcuffed.
"Swales told them, 'cu**s owe me money'. He was searched but nothing further was recovered.
"At the police station he was abusive and threatened to bite the nose off one officer."
Sheriff Thomas Millar called for a criminal justice social work report and deferred sentence until next month.
Swales, who has been held at HMP Polmont since his arrest, was remanded in custody.
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