31 C.F.R. § 100.5 Mutilated paper currency.
Title 31 - Money and Finance: Treasury
(a) Lawfully held paper currency of the United States which has been mutilated will be exchanged at face amount if clearly more than one-half of the original whole note remains. Fragments of such mutilated currency which are not clearly more than one-half of the original whole note will be exchanged 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. Definitions (1) 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 Treasury Department for examination by trained experts before any exchange is made. (2) 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 Treasury, but may be exchanged at commercial banks. [47 FR 32044, July 23, 1982, as amended at 56 FR 10170, Mar. 11, 1991]
Title 31: Money and Finance: Treasury
PART 100—EXCHANGE OF PAPER CURRENCY AND COIN
Subpart B—Exchange of Mutilated Paper Currency
§ 100.5 Mutilated paper currency.
