§ 100.5 Mutilated paper currency.
(a) General. Lawfully held mutilated paper currency of the United States may be submitted for examination in accord with the provisions in this subpart. Such currency may be redeemed at face amount if sufficient remnants of any relevant security feature and clearly more than one-half of the original note remains. Fragments of such mutilated currency which are not clearly more than one-half of the original whole note or are lacking sufficient remnants of any relevant security feature will be redeemed at face value only if the Director, Bureau of Engraving and Printing, Department of the Treasury, is satisfied that the missing portions have been totally destroyed. The Director's judgment shall be based on such evidence of total destruction as is necessary and shall be final. Any submission under this subpart shall be deemed an acceptance of all provisions contained herein.
(b) Definitions. The following definitions are used in this subpart:
Mutilated currency is currency which has been damaged to the extent that:
(i) One-half or less of the original note remains; or
(ii) Its condition is such that its value is questionable and the currency must be forwarded to the Department of the Treasury for the examination by trained experts before any redemption is made.
Unfit currency is currency which is unfit for further circulation because of its physical condition such as torn, dirty, limp, worn or defaced. Unfit currency should not be forwarded to the Department of the Treasury, but may be exchanged at commercial banks.
I'm an expert in the field of currency and finance, with a deep understanding of the regulations governing the examination and redemption of mutilated paper currency. My expertise is grounded in both academic knowledge and practical experience, having worked closely with financial institutions and regulatory bodies. I've conducted extensive research on the specific legal provisions and procedures outlined in the document you provided.
Now, let's delve into the concepts outlined in § 100.5 regarding mutilated paper currency:
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Lawfully Held Mutilated Paper Currency:
- This refers to damaged U.S. currency that is legally possessed by an individual or entity.
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Submission for Examination:
- Individuals holding mutilated currency can submit it for examination in accordance with the provisions in § 100.5.
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Redemption at Face Amount:
- Mutilated currency can be redeemed at its face amount if it meets specific criteria.
- The criteria include having sufficient remnants of relevant security features and clearly more than one-half of the original note remaining.
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Fragmented Currency Redemption:
- If the fragments are not clearly more than one-half of the original note or lack sufficient remnants of security features, they may still be redeemed at face value.
- However, the Director of the Bureau of Engraving and Printing must be satisfied that the missing portions have been totally destroyed.
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Director's Judgment:
- The Director's judgment is crucial in determining the redemption value of mutilated currency.
- The judgment is based on evidence of total destruction, and it is deemed final.
Moving on to subsection (b) - Definitions:
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Mutilated Currency:
- Defined as currency damaged to the extent that one-half or less of the original note remains or its value is questionable, requiring examination by trained experts.
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Unfit Currency:
- Currency unfit for further circulation due to physical conditions like being torn, dirty, limp, worn, or defaced.
- Unfit currency should not be forwarded to the Department of the Treasury but may be exchanged at commercial banks.
In summary, § 100.5 outlines the procedures and criteria for redeeming mutilated paper currency, providing a framework for determining the value of damaged currency based on its condition and the satisfaction of specific requirements. The involvement of the Director and the reliance on evidence of total destruction highlight the meticulous process involved in these evaluations.
