31 U.S.C. § 5120 : US Code - Section 5120: Obsolete, mutilated, and worn coins and currency

Search 31 U.S.C. § 5120 : US Code - Section 5120: Obsolete, mutilated, and worn coins and currency

(a)(1) The Secretary of the Treasury shall melt obsolete and worn
United States coins withdrawn from circulation. The Secretary may
use the metal from melting the coins for reminting or may sell the
metal. The Secretary shall account for the following in the coinage
metal fund under section 5111(b) of this title:
(A) obsolete and worn coins and the metal from melting the
coins.
(B) proceeds from the sale of the metal.
(C) losses incurred in the sale of the metal.
(D) losses incurred because of the difference between the face
value of the coins melted and the coins minted from the metal.
(2) The Secretary shall reimburse the coinage metal fund for
losses under paragraph (1)(C) and (D) of this subsection out of
amounts in the coinage profit fund under section 5111(b) of this
title.
(b) The Secretary shall -
(1) cancel and destroy (by a secure process) obsolete,
mutilated, and worn United States currency withdrawn from
circulation; and
(2) dispose of the residue of the currency and notes.
(c) The Comptroller General shall audit the cancellation and
destruction of United States currency and the accounting of the
cancellation and destruction. Records the Comptroller General
considers necessary to make an effective audit easier shall be made
available to the Comptroller General.