Mutilated currency is a term used by the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...

Bureau of Engraving and Printing The Bureau of Engraving and Printing (BEP) is a government agency within the United States Department of the Treasury that designs and produces a variety of security products for the United States government, most notable of which is Federal Re ...

(BEP) to describe

currency A currency, "in circulation", from la, currens, -entis, literally meaning "running" or "traversing" is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins. A more general ...

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 Water (chemical formula ) is an inorganic, transparent, tasteless, odorless, and nearly colorless chemical substance, which is the main constituent of Earth's hydrosphere and the fluids of all known living organisms (in which it acts as a s ...

, 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 in the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...

, 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.

References

Redeem Mutilated Currency
Bureau of Engraving and Printing

Bureau of Engraving and Printing Banknotes of the United States {{Money-stub

Classification

See also

References