
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 31USC5119]

 
                       TITLE 31--MONEY AND FINANCE
 
                           SUBTITLE IV--MONEY
 
                     CHAPTER 51--COINS AND CURRENCY
 
                    SUBCHAPTER II--GENERAL AUTHORITY
 
Sec. 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.

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 985; Pub. L. 102-390, title 
II, Sec. 226(b), Oct. 6, 1992, 106 Stat. 1630; Pub. L. 103-325, title 
VI, Sec. 602(g)(14), Sept. 23, 1994, 108 Stat. 2294.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
           Revised Section                   Source (U.S. Code)                
Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
5119(a)..............................  31:408a(less last proviso).     Jan. 30,
 1934, ch. 6, Secs.  6(less last
                                                                        proviso
), 11, 15(1st sentence words
                                                                        between
 2d and 3d semicolons), 48 Stat.
                                                                        340, 34
2, 344.
                                       31:444(1st sentence words
                                        between 2d and 3d
                                        semicolons).
                                       31:822b.
5119(b)(1)...........................  31:405a-3.                      June 24,
 1967, Pub. L. 90-29, Secs.  1,
                                                                        2, 81 S
tat. 77.
                                       31:911.                         June 30,
 1961, Pub. L. 87-66, Secs.  2,
                                                                        5, 6, 9
, 10, 75 Stat. 146, 147.
                                       31:915(a), (b).
5119(b)(2)...........................  31:404.                         May 31, 
1878, ch. 146, 20 Stat. 87; June
                                                                        30, 196
1, Pub. L. 87-66, Sec.  7, 75
                                                                        Stat. 1
47.
                                       31:420.                         R.S. Sec
.  3580.
                                       31:914.
                                       31:916.
5119(c)(1)...........................  31:915(c)(words before last
                                        comma).
5119(c)(2)...........................  31:405a-2.
                                       31:915(c)(words after last
                                        comma).
5119(d)..............................  31:917.
-------------------------------------------------------------------------------
---------------------------------

    In subsection (a), the words ``Secretary may not redeem'' are 
substituted for ``no . . . shall be redeemed'' in 31:408a(less last 
proviso) because of the source provisions restated in section 321 of the 
revised title. The words ``United States currency (including Federal 
reserve notes and circulating notes of Federal reserve banks and 
national banks)'' are substituted for ``currency of the United States'' 
and the text of 31:444(1st sentence words between 2d and 3d semicolons) 
for consistency with section 5103 of this title and to eliminate 
unnecessary words.
    In subsection (b)(1), before clause (A), the words ``upon completion 
of the transfers and credits authorized and directed by section 912 of 
this title'' in 31:915 and ``and the amount of the payment credited as a 
public debt receipt in accordance with such section'' are omitted as 
executed. In clause (B), the text of 31:405a-3(last sentence) and 
31:915(a)(4) is consolidated. The text of 31:405a-3(1st sentence) is 
omitted as executed. In clauses (C) and (E), the citations in 
parentheses are included only for information purposes.
    In subsection (b)(2), the words ``cancel and destroy'' are 
substituted for ``retired'' in 31:914 for consistency in the revised 
section. The words ``paragraph (1) of this subsection'' are substituted 
for ``Any currency the funds for the redemption or security of which 
have been transferred pursuant to the provisions of section 912 of this 
title, and any Federal Reserve notes as to which payment has been made 
under section 913 of this title'' because of the restatement. The words 
``presented to the Secretary'' are substituted for ``presentation at the 
Treasury'' because of the source provisions restated in section 321(c) 
of the revised title. The text of 31:916 is omitted as unnecessary 
because of the restatement. The text of 31:404 and 31:420 is omitted as 
superseded by the source provisions restated in this subsection and 
subsection (c). The words ``All acts and parts of acts in conflict 
herewith are hereby repealed'' in the Act of May 31, 1878 (ch. 146, 20 
Stat. 87), are omitted as executed.
    In subsection (c)(2), the words ``When the Secretary makes a 
determination under this subsection'' are added because of the 
restatement. The words ``on the books of the Treasury'' are omitted as 
surplus. The text of 31:405(e)(2)(1st sentence) is omitted as superseded 
by the source provisions restated in subsection (b).
    In subsection (d), the word ``paper'' is omitted as surplus. The 
words ``(including circulating notes of Federal Reserve banks and 
national banks)'' are substituted for ``including bank notes'' for 
consistency in the section. The words ``heretofore or hereafter issued'' 
are omitted as surplus.

                       References in Text

    Act of July 14, 1890, ch. 708, 26 Stat. 289, referred to in subsec. 
(b)(1)(C), which was known as the Sherman Purchase of Silver Act of July 
14, 1890, was classified to sections 408, 410, 412, and 453 of former 
Title 31, and sections 122 and 145 of Title 12, Banks and Banking, and 
was repealed by Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982, 96 Stat. 
1069.
    Section 4 of the Old Series Currency Adjustment Act, referred to in 
subsec. (b)(1)(D), is section 4 of Pub. L. 87-66, June 30, 1961, 75 
Stat. 146, which was classified to section 913 of former Title 31, and 
was repealed by Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982, 96 Stat. 
1079.
    Acts February 25, 1862, July 11, 1862, and March 3, 1863, and 
resolution January 17, 1863, referred to in subsec. (b)(1)(E), are acts 
Feb. 25, 1862, ch. 33, 12 Stat. 345, July 11, 1862, ch. 142, 12 Stat. 
532, and Mar. 3, 1863, ch. 73, 12 Stat. 709, and resolution Jan. 17, 
1863, 12 Stat. 822, respectively, which are not classified to the Code.


                               Amendments

    1994--Subsec. (b)(2). Pub. L. 103-325 inserted concluding 
provisions.
    1992--Subsec. (b)(2). Pub. L. 102-390 amended par. (2) generally. 
Prior to amendment, par. (2) read as follows: ``The Secretary shall 
redeem from the general fund of the Treasury and cancel and destroy 
currency referred to in paragraph (1) of this subsection when the 
currency is presented to the Secretary.''
