A currency note shall be considered unfit for circulation when:
a. It contains heavy creases which break the fiber of the paper and indicate that disintegration has begun. Provided, however, that mere creasing or wrinkling which has not broken nor weakened the note does not render the note unfit for circulation; or
b. It is badly soiled/contaminated and/or with writings even if it has proper life or sizing; or
c. It presents a limp or rag-like appearance.
A currency note shall be considered mutilated when:
a. Torn parts of banknotes are joined together with adhesive tape in a manner which tries to preserve as nearly as possible the original design and size of the note; or
b. The original size of the note has been reduced/lost through wear and tear or has been otherwise torn, damaged, defaced or perforated through action of insects, chemicals or other causes; or
c. It is scorched or burned to such an extent that although recognizable as such, it has become frail and brittle as to render further handling thereof impossible without disintegration or breaking; or
d. It is split edgewise; or
e. It has lost all the signatures inscribed thereon.
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Bangko Sentral ng Pilipinas - BSP Notes and Coins and Gold Buying Program