Mutilated currency is a term used by the
United States Bureau of Engraving and Printing (BEP) to describe
currency which is damaged to the point where it is difficult to determine the value of the currency, or where it is not clear that at least half of the note is present. Common causes of damage are fire,
water damage, chemicals, explosives, damage caused by animals (including consumption of the currency) or damage from extended burying of the currency.
Replacement of mutilated currency is a free public service provided by the Bureau of Engraving and Printing.
In general, mutilated U.S. paper currency can be submitted for evaluation.
If it is determined that at least half of a bill is present, the BEP will redeem its face value. When there is less than 50% of a bill present, then if it can be identified as authentic U.S. currency, and that evidence demonstrates to the satisfaction of the
Treasury Department that the missing portions have been destroyed, the face value of the bill will be redeemed in full.
Annually, the BEP handles approximately 30,000 claims, with currency redemptions valued at over $30 million.
The term is also used by the
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694 to act as the English Government's banker, and still one of the bankers for the Government of ...
in the
United Kingdom, which will replace mutilated banknotes under a similar list of requirements and conditions to those used by the BEP.
Classification
Banknotes which are merely very dirty, or very worn out, but where the value is clear, are not considered mutilated and can be either spent as normal or traded in at any bank, from where they will eventually be processed out of circulation.
See also
*
Contaminated currency
Most banknotes have traces of cocaine on them; this has been confirmed by studies done in several countries. In 1994, the U.S. 9th Circuit Court of Appeals determined that in Los Angeles, out of every four banknotes, on average more than three are ...
References
Redeem Mutilated CurrencyBureau of Engraving and Printing
Bureau of Engraving and Printing
Banknotes of the United States
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