Regulation relating to compensation for lost, burnt, or damaged notes and coins
The Regulation relating to compensation for lost, burnt or damaged notes and coins was laid down by Norges Bank on 16 March 2011 pursuant to Section 14 second paragraph of Act No. 28 of 24 May 1985 relating to Norges Bank and the Monetary System etc.
Section 1. Scope
The regulation concerns compensation for those series of notes and coins which are legal tender in Norway or eligible for redemption pursuant to Section 15 of the Norges Bank Act.
Section 2. General terms and conditions for compensation
Norges Bank may compensate for damaged notes and coins on the basis of their nominal value if the Bank has no reason to suspect that they are counterfeit and in the Bank’s judgement there is no reason to suspect that they are connected with other criminal acts.
No compensation will be paid for notes and coins that are damaged in a grossly negligent or deliberate manner, including dyed or chemically treated. Gross negligence or deliberate intent is deemed to exist, for example, if there is reason to assume that the damage was incurred in connection with commercial waste disposal or other deliberate manipulation.
Section 3. Compensation for damaged notes that are not whole
Compensation shall be paid for damaged notes that are torn or cut in accordance with the following rules:
- More than 55% of note intact: compensated for at nominal value
- 50 – 55% of note intact: compensated for at half the nominal value
- Less than 50% of note intact: no compensation paid
Compensation for a damaged note that consists of several parts shall be paid only if the parts can be shown to originate from the same note.
Section 4. Ex gratia payment for notes and coins
Compensation may be paid for notes and/or coins that have been severely damaged, destroyed or lost permanently such that the terms and conditions for compensation pursuant to Section 2 or Section 3 do not apply, provided that it can be substantiated to Norges Bank's satisfaction that the notes and/or coins existed.
Compensation shall not be paid if the notes and/or coins were deliberately destroyed or lost by the possessor. Nor shall compensation be paid when disproportionately large sums have been kept at one's residence or in an imprudent manner.
Section 5. Requirements for application, sorting, packing, fees etc.
A written application for compensation pursuant to Section 2 or Section 4 shall be submitted to Norges Bank on the prescribed form, which at minimum shall contain the applicant's name and address and the reason that the notes and/or coins were damaged, destroyed or lost permanently, as well as any other information that Norges Bank deems necessary to process the request. An application is not necessary for compensation for damaged notes that are not whole pursuant to Section 3.
Smaller quantities of damaged notes and/or coins (fewer than 100) shall be delivered along with the application. Larger quantities of damaged notes and/or coins shall be delivered to Norges Bank by further agreement. Norges Bank stipulates requirements for sorting and packing of larger quantities of notes and/or coins. Deliveries that do not satisfy these requirements will be refused.
Except for applications concerning smaller amounts, in the event an application pursuant to Section 2 or Section 4 is granted, the applicant shall pay a fee to Norges Bank. For processing particularly resource-intensive applications Norges Bank may charge a fee that covers its actual expenses. The fee will be deducted from any compensation paid.
The Bank shall issue more detailed guidelines and application processing rules pursuant to this provision.
Section 6. Destruction and reporting to the police or public prosecuting authority etc.
Notes and/or coins that have been delivered shall be retained by the Bank and, once compensation has been granted, destroyed. In the event of rejection, the applicant may request the return of notes and/or coins, unless there is reason to suspect that they are counterfeit, that notes have been manipulated such that the individual parts do not on their own constitute a basis for compensation or that notes and/or coins are connected with another criminal act. Such cases shall normally be reported to the police and public prosecuting authority.
Notes and/or coins requested returned shall be retrieved by the applicant by the deadline set by Norges Bank. Any expenses incurred by Norges Bank in this regard shall be defrayed by the applicant. Notes and/or coins not retrieved by the set deadline will be destroyed.
Section 7. Entry into force
This Regulation enters into force on 15 April 2011.