Exchange of Coin, 75922-75923 [2016-26270]

Agencies

• United States Mint
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 81, Number 211 (Tuesday, November 1, 2016)]
[Notices]
[Pages 75922-75923]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26270]


-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

United States Mint


Exchange of Coin

AGENCY: United States Mint, Department of the Treasury.

ACTION: Notice with request for comment.

-----------------------------------------------------------------------

SUMMARY: For many years, the United States Mint has administered a 
program by which people and businesses could exchange bent and partial 
coins (commonly referred to as ``mutilated coins'') for reimbursement. 
On November 2, 2015, the Mint suspended the exchange program to assess 
the security of the program and develop additional safeguards to 
enhance the integrity of the acceptance and processing of mutilated 
coinage. Since that time, the Mint has made significant progress in 
evaluating risks and identifying potential remedial measures. This 
notice and request for comment is to supplement the information that 
the Mint has collected to date.

[[Page 75923]]


DATES: Submit either electronic or written comments by November 15, 
2016.

ADDRESSES: Submit electronic comments to 
MutilatedCoin@usmint.treas.gov. Submit all written comments to 
Mutilated Coin Redemption Program; Financial Directorate; United States 
Mint; 801 9th Street NW., Washington, DC 20220.

FOR FURTHER INFORMATION CONTACT: Sheila Barnett, Legal Counsel, Office 
of the Chief Counsel, United States Mint, at (202) 354-7624 or 
sbarnett@usmint.treas.gov.

SUPPLEMENTARY INFORMATION: 

I. Background

    For many years, the United States Mint has administered a program 
by which people and businesses could exchange bent and partial coins 
(commonly referred to as ``mutilated coins'') for reimbursement. 
Regulations governing the program appear at 31 CFR part 100, subpart C. 
Bent coins are defined as U.S. coins which are bent or deformed so as 
to preclude normal machine counting but which are readily and clearly 
identifiable as to genuineness and denomination. Partial coins are 
defined as U.S. coins which are not whole; partial coins must be 
readily and clearly identifiable as to genuineness and denomination. 
This notice is not seeking comments on changing the definitions of bent 
or partial coins.
    On November 2, 2015, the Mint suspended its exchange of bent and 
partial coins to assess the security of the program and develop 
additional safeguards to enhance the integrity of the acceptance and 
processing of mutilated coinage. On May 2, 2016, the Mint extended the 
suspension. The program will resume at such time as the new regulations 
are finalized and published. Some of the safeguards the Mint is 
considering include requiring participant certification, coinage 
material authentication, chain of custody information, and annual 
submission limitations. The Mint is now seeking input on the effects of 
such measures on stakeholders, as well as other factors that should be 
considered to enhance the integrity of the acceptance and processing of 
mutilated coinage.
    The redemption of uncurrent coins, as defined by 31 CFR 100.10(a), 
is not being considered by the Mint. Uncurrent coins may be redeemed 
only at Federal Reserve banks and branches in accordance with the 
criteria and procedures set forth in 31 CFR 100.10.

    Dated: October 25, 2016.
Richard A. Peterson,
Deputy Director for Manufacturing and Quality.
[FR Doc. 2016-26270 Filed 10-31-16; 8:45 am]
 BILLING CODE P