> The individual notes on uncut currency sheets are legal tender.
It doesn't say that the whole sheet would be considered as a collection of legal tender. So far I see that the individual notes are legal tender, it doesn't say what happens if you cut it. Everything it says is about uncut currency sheets.
> Can I cut uncut currency sheets? What happens if the notes on my sheet were cut apart?
> Because the individual notes on uncut currency sheets are legal tender, they may be cut apart and spent. Were you to do this, they would only be valued at their face value, even though you would have paid more than their cumulative value for the uncut currency sheet.
Interesting up to what section they can be cut out, can it just be the two serial numbers and the denomination? Then the back of the notes becomes just "In God We Trust"
In the case of damaged bills, if you have over half of it it is generally still considered legal tender and banks will accept it as-is. However if over 50% of the bill is damaged or missing, it has to be turned into the Bureau of Engraving and Printing, which is basically the paper money half of the US Mint, and investigated/examined to determine if it is valid for replacement or reimbursement.
So I would assume as long as you have over half after cutting it, it would still be good, although businesses and banks can turn it down if they are unsure of it's legality or legitimacy, and not having a full serial number would likely get it rejected nearly everywhere.
If banks have to accept if over 50% of the bill is missing, then you can keep the other paper and use it. Using it productively seems difficult but $1M in $1 bills (one bill is roughly 1 gram) would be 1000kg, 490kg of paper, let's say it would be considered residential papers then at $100 per ton, we're looking at $49 in yield out of air. 0.0049bbps + infinite time on doing the process.
> Lawful holders of mutilated currency may receive a redemption at full value when: ...
> 1. Clearly more than 50% of a note identifiable as United States currency is present, along with sufficient remnants of any relevant security feature; or
> 2. 50% or less of a note identifiable as United States currency is present and the method of mutilation and supporting evidence demonstrate to the satisfaction of the [Bureau of Engraving & Printing] that the missing portions have been totally destroyed.
> Is uncut currency legal tender?
> Yes. The individual notes on uncut currency sheets are legal tender.