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Torn US bills (banknotes) can be redeemed for new currency at a bank provided that

(1) At least 2/3 of the bill is intact

(2) At least one serial number is completely visible

Those rules are intended to prevent people from tearing bills in half and redeeming each for full value.

The Treasury also has special provisions for redeeming money that was damaged by fire, water, insects, etc.

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