1. Legal tender ¹⁾ shall be accepted by the Czech National Bank, banks ²⁾ and other legal and natural entities in the following way:
   1. valid Czech banknotes (hereinafter "banknotes") shall be accepted by legal and natural entities without limit;
   2. valid Czech coins, including commemorative coins, and valid Czechoslovak commemorative coins ³⁾ (hereinafter "coins") shall be accepted by the Czech National Bank and banks without limit; other legal and natural entities may refuse to accept:
      1. more than ten coins of the same nominal value,
      2. coins of nominal value up to CZK 10 whose total amount exceeds CZK 100 and coins of higher nominal values whose total amount exceeds CZK 500,
      3. valid Czech commemorative coins,
      4. valid Czechoslovak commemorative coins.
2. Legal entities shall also accept legal tender worn out by circulation provided it is used for payment and is complete and whole. The Czech National Bank and banks shall also accept under the same conditions legal tender damaged other than by circulation (hereinafter "damaged legal tender"). Worn out and damaged legal tender shall not be issued back into circulation. Natural entities may refuse to accept worn out or damaged legal tender.
3. A banknote that is not lacking any of its parts shall be considered complete legal tender; a banknote whose area creates a continuous and intact whole shall be considered whole legal tender.

1. If not otherwise set forth in an agreement between the payer and recipient of legal tender, the recipient shall become responsible for the correct quantity of legal tender and its authenticity at the moment of taking it over. However, the recipient must have the possibility of checking the legal tender for correct quantity and authenticity.
2. If banknotes or coins submitted as legal tender are counterfeit or altered, or if such a suspicion arises, natural entities may refuse to accept them. Legal entities shall withdraw such banknotes or coins without compensation. ⁴⁾
3. Legal entities shall make out to a person who has submitted banknotes or coins under para. 2 (hereinafter "the bearer") a certificate of confirmation, which must contain the following:
   1. data on the bearer:
      1. name, surname and birth number, or date of birth and citizenship; for a legal entity, its name and identification number;
      2. the permanent or temporary residence address ⁵⁾ or the permanent long-term or short-term residence address ⁶⁾ of the bearer in the Czech Republic; for a legal entity, its registered address; if the bearer does not have a permanent, temporary, long-term or short-term residence address or a registered address in the Czech Republic, or, if it can justifiably be presumed that his stay in the Czech Republic will be terminated earlier than the suspicion of counterfeiting or altering banknotes or coins is confirmed or eliminated, the permanent residence address or the registered address abroad shall also be stated;
   2. the type and the number of the document according to which the identity of the bearer was established;
   3. the type and nominal value of the banknote and its series and number, or the number or nominal value and the year of mintage of the coin, the number of each individual type and nominal value of the banknotes or coins and their total nominal value;
   4. the date of withdrawal of the banknotes or coins and the name and registered address of the legal entity that has withdrawn them;
   5. a signature of the bearer.
4. Upon the request of the bearer, the number of the bank account in the Czech Republic to which the countervalue of the withdrawn banknotes and coins may be sent if the authenticity of these banknotes and coins is proved shall be stated on the certificate confirming the withdrawal of Czech banknotes or coins. Upon the request of a bearer who does not have a permanent, temporary, long-term or short-term residence address or registered address in the Czech Republic, or who expects that his stay will terminate before the suspicion of forfeiting or altering banknotes or coins is confirmed or eliminated, the certificate may also bear the name, surname and address of an entity, or in the case of a legal entity its name and registered address, which is authorised in the Czech Republic to take over such banknotes or coins, or the account number of this authorised entity.
5. A specimen certificate confirming the withdrawal of banknotes and coins shall be appended to this Decree.
6. Legal entities shall, in the bearer's presence, put the withdrawn banknotes or coins, along with a copy of the certificate confirming their withdrawal, into an envelope or other suitable wrapper and secure it with adhesive tape against unauthorised opening. The bearer shall confirm his presence during the depositing of the withdrawn banknotes or coins into the wrapper by writing his own signature over the adhesive tape; the entity that has taken over the banknotes or coins shall write its signature over the adhesive tape as well. Legal entities shall send the banknotes or coins deposited in this way for expert assessment to the Money Testing Office at the Czech National Bank's headquarters in Prague.
7. If the bearer is unknown, or if he refuses to give any of the required data or to confirm his presence when the withdrawn banknotes were put into the wrapper, this fact shall be stated on the certificate confirming the withdrawal of the banknotes and coins.
8. A legal entity that has withdrawn banknotes or coins in accordance with para. 2 shall inform the police or state authorities of this without delay.
9. If the expert assessment proves that the withdrawn banknotes or coins are counterfeit or have been altered, the Czech National Bank shall send information of the result of the assessment to the legal entity that withdrew the banknotes and coins. The bearer, upon his request, shall be given this information by the legal entity that withdrew the banknotes or coins.
10. If the Czech National Bank finds that the withdrawn banknotes or coins are genuine, it will, without delay, return them to the bearer or to the entity authorised in the Czech Republic to take them over. The Czech National Bank shall inform the legal entity that withdrew the banknotes or coins of the result of the expert assessment. If the certificate confirming the withdrawal of the banknotes or coins lacks the data on the bearer or the data are incomplete and therefore the banknotes or coins cannot be returned to him, the Czech National Bank shall inform the legal entity that withdrew them of this without delay. If the legal entity that withdrew the banknotes or coins does not revise the data on the bearer within 30 days from the day it receives the information, or if such data are not ascertained in another way, the countervalue of the withdrawn banknotes or coins shall be deposited on a special account held with the Czech National Bank. The countervalue of the withdrawn banknotes or coins shall be reimbursed to the bearer upon his request.

If counterfeit or altered foreign banknotes or coins are detected, or if such a suspicion arises ⁴⁾ , the procedures pursuant to §2, paras. 2 to 10 are applied appropriately. When it is necessary to deposit foreign banknotes or coins on the special account pursuant to §2, para. 10, their nominal value shall be converted into the Czech currency using the mid-point exchange rate announced by the Czech National Bank. If the bearer exercises the right of return of banknotes or coins, he shall be reimbursed for their countervalue in the currency in which the withdrawn banknotes or coins were denominated.

1. The Czech National Bank and banks performing cash operations shall exchange legal tender of specific nominal values for legal tender of other nominal values and valid commemorative coins for other legal tender free of charge, unless stipulated otherwise hereinafter.
   
2. The Czech National Bank and banks performing cash operations shall exchange invalid banknotes and coins in the period set forth in a legal regulation of the Czech National Bank ⁷⁾ free of charge, unless stipulated otherwise hereinafter.
3. If the banknotes and coins submitted for exchange pursuant to paras. 1 and 2 are not sorted or packed in compliance with §5, paras. 1 and 2 of this Decree, a fee for rendering a cash service may be demanded. A fee may also be demand for exchange of banknotes and coins pursuant to para. 1 when it is necessary to use counting or sorting machines or equipment for the exchange of a greater number of banknotes or coins, or banknotes or coins of more nominal values.

1. When legal tender is passed on between legal entities and between legal and natural entities, the payer shall sort the legal tender into individual nominal values. The payer shall pack banknotes of the same denomination into bundles of 100 and put a tape around them. The banknotes placed in bundles must be smooth and arranged by side and direction of print. Ten complete bundles of the same nominal value create a package of banknotes. The payer shall put coins of the same nominal value in bags of one hundred coins or wrap them in rolls of fifty coins. If the payer and recipient so agree, a different number of coins may be set for bags or rolls.
2. The tapes with which bundles of banknotes are furnished, as well bags or rolls of coins, shall be marked with the number of banknotes or coins contained inside them, together with their nominal value and the total amount; if the payer is a legal entity, the tapes shall also be marked with the name and registered address of the legal entity. If a legal entity or an entrepreneur, ⁸⁾ even if he is not a legal entity, submits banknotes or coins of more than two nominal values for exchange, they shall be accompanied with a slip indicating the number of each individual nominal value of the banknotes or coins.
3. If, when passing legal tender on between legal entities, legal tender worn out by circulation or damaged legal tender is passed on separately, bundles of worn out banknotes and bags or rolls of worn out coins shall be marked with the words "Neupotřebitelné peníze" or with a large capital "N". Damaged legal tender, provided it is complete, shall be packed into bundles, bags or rolls of legal tender worn out by circulation.

1. Damaged banknotes and coins issued by the Czech National Bank whose nominal value is not in doubt shall be exchanged by the Czech National Bank and banks performing cash operations. Banknotes, provided they are complete and not assembled from more than two parts about which there is no doubt they belong together, and damaged whole coins shall be exchanged in the full nominal value without any deductions. Damaged banknotes, provided they are whole and lack only a part of the blank white margin, shall also be exchanged in the full nominal value.
2. Only those damaged banknotes and coins whose authenticity is not in doubt shall be exchanged. If a bank has doubts about the authenticity of banknotes or coins, it shall act in compliance with §2, paras. 2, 3, 4, 6, 7 and 8.
3. Banks may refuse to exchange banknotes or coins whose design or relief is illegible, malformed or perforated. They shall withdraw such banknotes or coins without compensation and send them to the Czech National Bank ⁹⁾ for destruction. The bearer shall be given a certificate confirming the withdrawal of the banknotes or coins.
4. If banknotes that have been defaced by writing, drawing, overprinting, printing or perforation or have been soiled by paint, glue or other similar material are withdrawn, ¹⁰⁾ the bearer shall be given a certificate confirming their withdrawal and they shall be sent to the Czech National Bank for assessment.

1. The Czech National Bank and banks performing cash operations shall provide compensation for incomplete banknotes and for complete banknotes assembled from more than two parts according to the size of the damaged banknote's area. If a banknote, or the remaining piece of it, assembled from more parts is submitted for compensation assessment, it shall be judged as a whole only if there is no doubt that the individual parts belong together, eg according to the series and serial number and the shape in the places where it is torn; in cases of doubt, every submitted part shall be judged separately.
2. The size of a banknote's area shall be defined by grids that divide the banknote's area with an equal number of vertical and horizontal lines into 100 fields of the same size. Fields that are more than half covered by the remaining piece of the banknote shall be included in the area of the banknote's remaining piece.
3. Compensation shall be provided in the amount of :
   1. the nominal value of the banknote, provided the banknote is complete or its remaining piece is larger than three-quarters of the banknote's original area,
   2. half the nominal value of the banknote, if the submitted remaining piece represents one-half to three-quarters of the banknote's original area,
   3. one-quarter of the nominal value of the banknote, if the submitted remaining piece represents at least one-quarter and less than one-half of the banknote's original area.
4. Compensation shall not be provided for a remaining piece of a banknote smaller than one-quarter of the original area.

1. Compensation shall be provided for incomplete coins only in the following cases:
   1. for coins whose outer and middle parts can fall apart because of the technology of their production,
   2. for coins that are split lengthways at the edge into a part with the face side and a part with the reverse side.
2. Compensation for the coins stipulated in para. 1, letter a) shall be provided in the amount of the nominal value of the coin when all parts of the coin, or at least the part whose diameter corresponds to the diameter of the whole coin, are submitted. Compensation shall not be provided for middle parts of the coin submitted separately.
3. Compensation for the coins stipulated in para. 1. letter b) shall be provided in the amount of the nominal value of the coin when both parts of the split coin are submitted. When only one of the parts of the split coin is submitted, compensation of half the nominal value of the coin shall be provided.

1. Banks shall send damaged banknotes and coins for which they have provided compensation, up to one month at the latest after having provided it, to the Czech National Bank, which shall reimburse them for the amounts provided. The Czech National Bank shall provide regular information on which CNB department damaged banknotes and coins should be sent to.
   
2. On the basis of written agreement with the Czech National Bank, a legal entity other than a bank may also provide compensation for the damaged banknotes and coins stipulated in §7 para.1 and §8.

1. Legal or natural entities may send to the Czech National Bank damaged banknotes or coins that because of the nature of their damage could not have been exchanged under § 6 para. 1. and banknotes for which, for the same reasons, compensation could not have been calculated under § 7, paras. 1 to 3, for example for charred, rotten or disintegrated banknotes, together with a request for an expert assessment and provision of compensation. The request shall contain a description of how the banknotes or coins were damaged, and the parcel shall be marked with the words "Poškozené peníze".
2. Legal or natural entities from whom banknotes have been withdrawn without compensation under § 6, paras. 3 or 4, may also request compensation from the Czech National Bank. The request for compensation shall contain a description of how the banknote was damaged.
3. The Czech National Bank may, in the cases stipulated in paras. 1 and 2, provide compensation assessed in a way and amount other than that stipulated in § 7 paras. 1 to 4. Compensation provided in this way must not be lower than the compensation assessed pursuant to § 7, para. 3.

1. If exchanged damaged banknotes or coins or compensation provided for damaged banknotes or coins are sent to the applicant by mail, postage shall be subtracted from the amount reimbursed.
2. The Czech National Bank, banks and legal entities which have concluded a written agreement under §9, para. 2 shall be entitled to a fee for rendering a cash service for assessing compensation for damaged banknotes or coins. The fee shall be subtracted from the compensation provided for the damaged banknotes or coins.
3. When providing compensation under §10, the Czech National Bank may demand compensation for the costs of producing new banknotes or coins in an amount corresponding to the number of banknotes or coins for which the compensation was provided. The compensation for costs shall be subtracted from the compensation provided for the damaged banknotes or coins.

State Bank of Czechoslovakia Decree No. 147/1992 of the Coll., stipulating the procedure for accepting and handling legal tender and for providing compensation for incomplete and damaged banknotes and coins, is hereby nullified.

This Decree shall enter into effect on 1 March 1994.

Footnotes

1) § 16 of Czech National Council (CNC) Act No. 6/1993 of the Collection of Laws (hereinafter "Coll."), on the Czech National Bank
2) Act No. 21/1992 of the Coll., on Banks, in the wording of subsequent regulations
3) § 1 para. 2 of Act No. 60/1993 of the Coll., on Currency Separation
4) § 21 of CNC Act No. 6/1993 of the Coll.
5) Act No. 135/1982 of the Coll., on Reporting and Registration of Citizen Residency
6) Act No. 123/1992 of the Coll., on the Residency of Foreigners on the Territory of the Czech and Slovak Federal Republic
7) § 22 letter d) of CNC Act No. 6/1993 of the Coll.
8) § 2, para. 2 of Act No. 513/1991 of the Coll, The Commercial Code, in the wording of subsequent regulations
9) § 17, para. 2 of CNC Act No. 6/1993 of the Coll.
10) § 17, para. 3 of CNC Act No. 6/1993 of the Coll.