31 U.S.C. § 5119 : US Code - Section 5119: Redemption and cancellation of currency

Search 31 U.S.C. § 5119 : US Code - Section 5119: Redemption and cancellation of currency

(a) Except to the extent authorized in regulations the Secretary
of the Treasury prescribes with the approval of the President, the
Secretary may not redeem United States currency (including Federal
reserve notes and circulating notes of Federal reserve banks and
national banks) in gold. However, the Secretary shall redeem gold
certificates owned by the Federal reserve banks at times and in
amounts the Secretary decides are necessary to maintain the equal
purchasing power of each kind of United States currency. When
redemption in gold is authorized, the redemption may be made only
in gold bullion bearing the stamp of a United States mint or assay
office in an amount equal at the time of redemption to the currency
presented for redemption.
(b)(1) Except as provided in subsection (c)(1) of this section,
the following are public debts bearing no interest:
(A) gold certificates issued before January 30, 1934.
(B) silver certificates.
(C) notes issued under the Act of July 14, 1890 (ch. 708, 26
Stat. 289).
(D) Federal Reserve notes for which payment was made under
section 4 of the Old Series Currency Adjustment Act.
(E) United States currency notes, including those issued under
section 1 of the Act of February 25, 1862 (ch. 33, 12 Stat. 345),
the Act of July 11, 1862 (ch. 142, 12 Stat. 532), the resolution
of January 17, 1863 (P.R. 9; 12 Stat. 822), section 2 of the Act
of March 3, 1863 (ch. 73, 12 Stat. 710), or section 5115 of this
title.
(2) Redemption, cancellation, and destruction of currency. - The
Secretary shall -
(A) redeem any currency described in paragraph (1) from the
general fund of the Treasury upon presentment to the Secretary;
and
(B) cancel and destroy such currency upon redemption.
The Secretary shall not be required to reissue United States
currency notes upon redemption.
(c)(1) The Secretary may determine the amount of the following
United States currency that will not be presented for redemption
because the currency has been destroyed or irretrievably lost:
(A) circulating notes of Federal reserve banks and national
banks issued before July 1, 1929, for which the United States
Government has assumed liability.
(B) outstanding currency referred to in subsection (b)(1) of
this section.
(2) When the Secretary makes a determination under this
subsection, the Secretary shall reduce the amount of that currency
outstanding by the amount the Secretary determines will not be
redeemed and credit the appropriate receipt account.
(d) To provide a historical collection of United States currency,
the Secretary may withhold from cancellation and destruction and
transfer to a special account one piece of each design, issue, or
series of each denomination of each kind of currency (including
circulating notes of Federal reserve banks and national banks)
after redemption. The Secretary may make appropriate entries in
Treasury accounts because of the transfers.